Ryan's Paints allocates overhead based on machine hours. Selected data for the most recent year follow. The estimates were made as of the beginning of the year, while the actual results were for the entire year.
The amount of manufacturing overhead allocated for the year based on machine hours would have been

Question

Ryan's Paints allocates overhead based on machine hours. Selected data for the most recent year follow.  The estimates were made as of the beginning of the year, while the actual results were for the entire year.
The amount of manufacturing overhead allocated for the year based on machine hours would have been

Quizplus · Accepted Answer

To calculate the amount of manufacturing overhead allocated for the year based on machine hours, we need to first calculate the predetermined overhead rate (POHR).

POHR = Estimated manufacturing overhead cost / Estimated machine hours
= $282,000 / 30,000 machine hours
= $9.40 per machine hour

Next, we need to use the actual machine hours to allocate the manufacturing overhead.

Manufacturing overhead allocated = Actual machine hours x POHR
= 28,125 machine hours x $9.40 per machine hour
= $264,375

Therefore, the correct answer is B) $264,375.

Ryan's Paints Allocates Overhead Based on Machine Hours