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Galina-37 [17]
3 years ago
6

Acheson 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 $ 157,400 Estimated machine-hours 4,570 Actual manufacturing overhead $ 156,700 Actual machine-hours 4,720 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: (Round your intermediate calculations to 2 decimal places.)
Business
1 answer:
Irina18 [472]3 years ago
3 0

Answer:

$34.44 and $162,556.80

Explanation:

The computation of the predetermined overhead rate is shown below:

Predetermined overhead rate = (Total estimated manufacturing overhead) ÷ (estimated machine hours)

= ($157,400) ÷ (4,570 machine hours)

= $34.44

Now the applied manufacturing overhead is

= Actual machine hours × predetermined overhead rate

= 4,720 machine hours × $34.44

= $162,556.80

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