Caple Corporation applies manufacturing overhead on the basis of machine-hours. At the beginning of the most recent year, the company based its predetermined overhead rate on total estimated overhead of $16,660. Actual manufacturing overhead for the year amounted to $25,000 and actual machine-hours were 1,460. The company's predetermined overhead rate for the year was $11.90 per machine-hour.The applied manufacturing overhead for the year was closest to:
A) $26,071
B) $18,119
C) $17,374
D) $16,660

Question

Quizplus · Accepted Answer

The applied manufacturing overhead is calculated by multiplying the predetermined overhead rate by the actual machine-hours. The predetermined overhead rate is $11.90 per machine-hour, and the actual machine-hours are 1,460. Therefore, the applied manufacturing overhead is $11.90 x 1,460 = $17,374.

Caple Corporation Applies Manufacturing Overhead on the Basis of Machine-Hours