Sandler Corporation bases its predetermined overhead rate on the estimated machine-hours for the upcoming year. Data for the upcoming year appear below:

   

Estimated machine-hours		72,500
Estimated variable manufacturing overhead	$	3.20	per machine-hour
Estimated total fixed manufacturing overhead	$	838,720

   

Required:

Compute the company's predetermined overhead rate. (Round your answer to 2 decimal places. Omit the "$" sign in your response)

   

Predetermined overhead rate

$

 
Explanation:

Estimated total manufacturing overhead

= $838,720 + ($3.20 per machine-hour × 72,500 machine-hours) = $1,070,720

   

Predetermined overhead rate = Estimated total manufacturing overhead ÷ Estimated total amount of the allocation base

  

= $1,070,720 ÷ 72,500 machine-hours = $14.77 per machine-hour