Scottso Corporation applies overhead using a normal costing approach based upon machine-hours.Budgeted factory overhead was $266,400,budgeted machine-hours were 18,500.Actual factory overhead was $287,920,actual machine-hours were 19,050.How much overhead would be applied to production?

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Quizplus · Accepted Answer

The overhead rate is calculated as budgeted overhead ($266,400) divided by budgeted machine-hours (18,500), which equals $14.40 per machine-hour. Applied overhead is then calculated by multiplying the overhead rate ($14.40) by the actual machine-hours (19,050), resulting in $274,320.

Scottso Corporation Applies Overhead Using a Normal Costing Approach Based