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 2 years ago

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