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Margaret [11]
3 years ago
11

​Poland's Paints allocates overhead based on machine hours. Selected data for the most recent year follow. Estimated manufacturi

ng overhead cost $ 238 comma 700$238,700 Actual manufacturing overhead cost $ 244 comma 000$244,000 Estimated machine hours 20 comma 20020,200 Actual machine hours 22 comma 70022,700 The estimates were made as of the beginning of the​ year, while the actual results were for the entire year. The amount of manufacturing overhead allocated for the year based on machine hours would have been​ _____ .​ (Round intermediary calculations to the nearest cent and final answer to the nearest​ dollar.) A. $ 217 comma 128$217,128.
Business
1 answer:
sasho [114]3 years ago
3 0

Answer:

The amount of manufacturing overhead allocated for the year based on machine hours would have been​ $268,087

Explanation:

For computing the manufacturing overhead amount, first, we have to compute the predetermined overhead rate. The formula is shown below:

Predetermined overhead rate = (Total estimated manufacturing overhead) ÷ (estimated direct labor-hours)

= $238,700 ÷ 20,200 hours

= $11.81

Now the manufacturing overhead equal to

= Actual direct labor-hours × predetermined overhead rate

= 22,700 hours × $11.81

= $268,087

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