Acton Corporation, which applies manufacturing overhead on the basis of machine-
ID: 2508713 • Letter: A
Question
Acton 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
$139,080
Estimated machine-hours
3,800
Actual manufacturing overhead
$137,000
Actual machine-hours
3,780
The predetermined overhead rate is closest to:
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.
$36.60
$36.41
$36.24
$36.05
Estimated manufacturing overhead
$139,080
Estimated machine-hours
3,800
Actual manufacturing overhead
$137,000
Actual machine-hours
3,780
Explanation / Answer
The predetermined overhead rate = Estimated manufacturing overhead / Estimated machine-hours
=$ 139,080 / 3,800
= $ 36.60
Hence the correct answer is A. $ 36.60
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.