The Following Data Are Available for Skyway If Overhead Is Applied Based on Machine Hours,the Predetermined Overhead

The following data are available for Skyway:
$$\begin{array} { | l | l | } \hline \text { Estimated machine hours } & 40,000 \text { hours } \\\hline \text { Estimated overhead costs } & \$ 80,000 \\\hline\end{array}$$
If overhead is applied based on machine hours,the predetermined overhead rate is:

A) $2.00.
B) $20.00.
C) $0.50.
D) 200%.

Correct Answer:

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