At the beginning of the year, Monroe Company estimates annual overhead costs to be $1,600,000 and that 300,000 machine hours will be operated.Using machine hours as a base, the amount of overhead applied during the year if actual machine hours for the year was 315,000 hours is

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The overhead rate is calculated as estimated overhead costs divided by estimated machine hours: $1,600,000 / 300,000 = $5.33 per machine hour. The overhead applied is then $5.33 * 315,000 = $1,680,000.

At the Beginning of the Year, Monroe Company Estimates Annual