Crane Corporation produces wooden and aluminum baseball bats. In preparing the current budget, Crane's management estimated a total of $$540,000$ in manufacturing overhead costs and $18,000$ machine hours for the coming year. In December, Crane's accountants reported actual manufacturing overhead incurred of $$45,000$ and $17,750$ machine hours used during the year. Crane applies overhead based on machine hours.

What was Crane's predetirmined overhead rate for the year?

Answer rating: 100% (QA)

Predetermined overhead rate can be computed by using the ... View the full answer