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Acheson Corporation, which applies manufacturing overhead on the basis of machine-hours, has provided the following data...

Acheson Corporation, which applies manufacturing overhead on the basis of machine-hours, has provided the following data for its most recent year of operations.

Estimated manufacturing overhead $ 157,350
Estimated machine-hours 4,560
Actual manufacturing overhead $ 156,600
Actual machine-hours 4,700

The estimates of the manufacturing overhead and of machine-hours were made at the beginning of the year for the purpose of computing the company's predetermined overhead rate for the year.

The applied manufacturing overhead for the year is closest to: (Round your intermediate calculations to 2 decimal places.)

Multiple Choice:

  • $162,197

  • $181,044

  • $161,398

  • $156,604

0 0
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Answer #1

Predetermined Overhead rate = Estimated overhead/Estimated machine hours

= 157,350/4,560

= 34.51 per machine hour

Applied overhead = 34.51*4700

= $162,197

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