Question

newconnect.mheducation.com Exam Help Save & F Fusaro 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 total fixed manufacturing overhead from the beginning of the year Estimated activity level from the beginning of the year Actual total fixed manufacturing overhead $684,000 machine 40,000 hours $616,000 machine- 37,700 hours Actual activity level 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.)

Answer 1

Answer:-

The correct answer is $644,670

​​​​​​Explanation -

Predetermined overhead rate = Total fixed manufacturing overhead / Estimated activity level

In the Beginning of the year,

Total fixed manufacturing overhead = $684,000

Estimated activity level = 40,000 machine-hours

Predetermined Overhead rate = $684,000 / 40,000 machine hours

Predetermined Overhead rate = $17.10

Now we calculate the Manufacturing Overhead Applied -

Manufacturin Overhead Applied = Actual activity level × predetermined overhead rate

Actual activity level = 37,700 machine-hours

Predetermined Overhead rate = $17.10

Manufacturing Overhead Applied = 37,700 machine-hours × $17.10

Manufacturing Overhead Applied = $644,670