Question

LaSalle Company applies manufacturing overhead to jobs using a predetermined overhead rate based on machine hours....

LaSalle Company applies manufacturing overhead to jobs using a predetermined overhead rate based on machine hours. When applying manufacturing overhead to Job XYZ, LaSalle will multiply the predetermined overhead rate by:

a.

the total manufacturing overhead used to produce Job XYZ.

b.

the total number of machine hours actually used during the year.

c.

the beginning of year estimate of total machine hours to be used during the year.

d.

the number of machine hours used to produce Job XYZ.

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Answer #1

predetermined overhead rate=Estimated manufacturing overhead/Estimated machine hours

Hence applied overhead would be=Predetermined overhead rate*Actual machine hours

Such applied overhead would then be compared to actual overhead of the Job to compute under/over applied overhead etc.

Hence the correct option is:

the number of machine hours used to produce Job XYZ.

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