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

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.  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:

Quizplus · Accepted Answer

Manufacturing overhead applied = Predetermined overhead rate × Actual amount of the allocation base
= $36.60 per machine-hour × 3, 780 machine-hours
= $138, 348

Acton Corporation, Which Applies Manufacturing Overhead on the Basis of Machine-Hours