The estimated manufacturing overhead cost was $20,000 and estimated machine hours were 10,000.Actual manufacturing overhead cost was $22,000 and actual machine hours were 12,000.The overhead application rate per hour based on machine hours is:

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Overhead Application Rate per Hour= Estimated Manufacturing Overhead Cost/Estimated Machine Hours
= $20,000/10,000 hours
= $2/hour
Actual Overhead Applied = Overhead Application Rate per Hour x Actual Machine Hours
= $2/hour x 12,000 hours
= $24,000
However, the actual overhead cost incurred is $22,000, which means there is an over-application of overhead. To calculate the overhead application rate per hour based on machine hours, we need to divide the estimated manufacturing overhead cost by the estimated machine hours, not the actual machine hours. Therefore, the correct calculation would be:
Overhead Application Rate per Hour= Estimated Manufacturing Overhead Cost/Estimated Machine Hours
= $20,000/10,000 hours
= $2/hour
Therefore, the overhead application rate per hour based on machine hours is $2.00.

The Estimated Manufacturing Overhead Cost Was $20,000 and Estimated Machine