Question

In: Accounting

H Corporation uses a predetermined overhead rate base on machine-hours that it recalculates at the beginning...

H Corporation uses a predetermined overhead rate base on machine-hours that it recalculates at the beginning of each year. The company has provided the following data for the most recent year.

Estimated manufacturing overhead from the
beginning of the year		 $ 310,000
Estimated activity level from the beginning of the year 20,000 machine-hours
Actual total fixed manufacturing overhead $ 338,000
Actual activity level 18,300 machine-hours

The amount of manufacturing overhead that would have been applied to all jobs during the period is closest to: (Round your intermediate calculations to 2 decimal places.)

Multiple Choice

  • $283,650

  • $309,270

  • $28,000

  • $310,000

Solutions

Expert Solution

Working Notes:
CACLULATION OF OVERHEAD APPLICATION RATE PER MAHCINE HOURS
Overhead Application Rate = Estimated Manufacturing Overhead "/" Estimated Machine Hours   "=" Estimated Overhead rate PER Machine Hrs
Overhead Application Rate = $                    3,10,000 "/"                        20,000 "=" $                     15.50
Solution:
CALCULATION OF MAHCINE OVERHEAD APPLIED
Actual Machine Overhead Worked 18300 Machine Hours
Multiply By "X" By
Estimated Overhead rate Per Machine Hrs $                          15.50
Applied Overhead = $                    2,83,650
Answer = Option 1 = $ 283,650

ekkarill92 answered 3 years ago
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