The following information relates to the Moonie Park Manufacturing Company for the year 2012.
Plant capacity 480,000 machine hours
Normal level of production 432,000 machine hours
Budgeted level of production 360,000 machine hours
Budgeted manufacturing overhead $2,160,000
Actual manufacturing overhead for the month of $175,000
Actual machine hours used for February 2012 35,000
Calculate the predetermined overhead rates per machine hour based on practical capacity, normal
capacity and budgeted capacity respectively.
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