Smith 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 manufacturing overhead for the year would have been

Question

Smith 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 manufacturing overhead for the year would have been

Quizplus · Accepted Answer

A) $250,000/20,000 = $12.50 × 21,000 = $262,500
Then $262,500 - 230,000 = $32,500 overallocated

Smith Paints Allocates Overhead Based on Machine Hours