Acheson Corporation, which applies manufacturing overhead on the basis of machine-hours, has provided the following data for its most recent year of operations.
The estimates of the manufacturing overhead and of machine-hours were made at the beginning of the year for the purpose of computing the company's predetermined overhead rate for the year.
-The applied manufacturing overhead for the year is closest to:
A) $162,682
B) $155,995
C) $158,789
D) $159,842

Question

Acheson Corporation, which applies manufacturing overhead on the basis of machine-hours, has provided the following data for its most recent year of operations.
  The estimates of the manufacturing overhead and of machine-hours were made at the beginning of the year for the purpose of computing the company's predetermined overhead rate for the year.
-The applied manufacturing overhead for the year is closest to:
A) $162,682 
B) $155,995 
C) $158,789 
D) $159,842

Quizplus · Accepted Answer

Manufacturing overhead applied = Predetermined overhead rate × Actual amount of the allocation base
= $34.90 per machine-hour × 4,580 machine-hours
= $159,842

Acheson Corporation, Which Applies Manufacturing Overhead on the Basis of Machine-Hours