Question

Acton Corporation, which applies manufacturing overhead on the basis of machine-hours, has provided the following data for its most recent year of operations. Estimated manufacturing overhead $132,600 Estimated machine-hours 1,700 Actual manufacturing overhead $124,100 Actual machine-hours 1,600 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: $122,721 $124,800 $123,439 $124,082

Answer 1

Answer:

Allocated MOH= $124,800

Explanation:

Giving the following information:

Applies manufacturing overhead based on machine-hours.

Estimated manufacturing overhead $132,600 Estimated machine-hours 1,700.

Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Estimated manufacturing overhead rate= 132600/1700= $78 per machine-hour

Actual machine-hours 1,600.

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Allocated MOH= 78*1600= 124,800