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Assume (1) actual machine-hours worked during the period of 54,000 hours, (2) estimated machine-hours to be worked during the
Multiple Choice $455,000 $405,000 $430,000 $480,000
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Answer #1

Ans: The correct option for the answer is option C i.e. $437,600

Overhead applied to production= 432,000

Actual Machine hours= 54,000

Pre-determined Overhead rate=432,000/54,000

=> $8

Estimated Machine hours= 54,700

Estimated total overhead cost= 54,700*8

=> $437,600

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