# ​Aaron, Inc. estimates direct labor costs and manufacturing overhead costs for the coming year to be $770 comma 000 and$ 550 comma

​Aaron, Inc. estimates direct labor costs and manufacturing overhead costs for the coming year to be $770 comma 000 and$ 550 comma 000​, respectively. Aaron allocates overhead costs based on machine hours. The estimated total labor hours and machine hours for the coming year are 20 comma 000 hours and 5 comma 000 ​hours, respectively. What is the predetermined overhead allocation​ rate? (Round your answer to the nearest​ cent.)

Estimated manufacturing overhead rate= $110 per machine hour Explanation: Giving the following information: Estimated manufacturing overhead costs=$550,000.

Aaron allocates overhead costs based on machine hours.

The estimated total machine hours= 5,000 ​hours

To calculate the estimated manufacturing overhead rate we need to use the following formula:

Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Estimated manufacturing overhead rate= 550,000/5,000= $110 per machine hour answer (b); /// a method of measuring the opinions of a large group of people by selecting a subset of the larger group, asking them a set of questions and then generalizing those responses; Answerwinchell would use the residual method($120-$100)=$20;

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