Poland'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

Poland'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 use the formula:

Manufacturing overhead allocated = Actual machine hours * Predetermined overhead rate

Predetermined overhead rate = Estimated total manufacturing overhead cost / Estimated total machine hours

Predetermined overhead rate = ($240,000 + $60,000 + $15,000) / 18,000 machine hours = $315,000 / 18,000 machine hours = $17.50 per machine hour

Manufacturing overhead allocated = 14,300 machine hours * $17.50 per machine hour = $250,250

Therefore, the closest answer is C) $267,750.

Poland's Paints Allocates Overhead Based on Machine Hours