[ ] Question 4 (of 12) Save & Exit Submit Time remaining: 0:47:48 4. Acton Corpo

Question

[ ] Question 4 (of 12) Save & Exit Submit Time remaining: 0:47:48 4. 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 Estimated machine-hours Actual manufacturing overhead Actual machine-hours $103,610 1,300 $98,400 1,240 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 O $96,749 s98328 O 597467 O 598.110

Explanation / Answer

Answer - (B) 98828

Applied Overhead cost = Predetermined overhead rate * Actual machine hours.

Predetermined overhead rate = estimated manufacturing overhead/Estimated machine hours = 103610/1300 = 79.7

Now,

Applied Overhead cost  = 79.7*1240 = 98828

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