Estimated manufacturing overhead costs were $60,000 and the number of estimated machine hours was 20,000.Actual overhead costs were $61,000 and the actual number of machine hours used was 20,500.Based on machine hours,the overhead application rate per hour is:

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The overhead application rate is calculated by dividing the estimated manufacturing overhead costs by the estimated machine hours: $60,000 / 20,000 hours = $3.00 per hour.

Estimated Manufacturing Overhead Costs Were $60,000 and the Number of Estimated