Manufacturing overhead rate per machine hour
If the overhead rate is recomputed at the end of for the year, the manufacturing overhead has resulted in a trend towards machine hours as the activity base in the calculation. The predetermined overhead rate for machine hours is calculated by dividing the estimated manufacturing overhead cost total by the estimated number of machine � If $420,000 is estimated manufacturing overhead cost for a period and the company uses machine hours as the activity driver (see first paragraph of the main�