Q. 1)
In this case X should be replaced by 8,000 hours and then the
equation should be solved to get the answer.
Y = 5,300 + 0.60 × 8,000
= 5,300 + 4,800
= 10,100
Answer: The required cost is $10,100.
Q. 2)
Fixed overhead should be in per-hour, and then this should be
added to variable rate to get the required rate.
Required rate = (Fixed overhead / Hours) + Variable overhead per
hour
= ($425,000 / 52,800) + $4.10
= 8.05 + 4.10
= 12.15 per machine hour (Answer)
