Answer:
The correct answer is B: $384,000
Explanation:
Giving the following information:
Blakely charges manufacturing overhead to products by using a predetermined application rate computed based on machine hours.
The following data pertain to the current year:
Budgeted manufacturing overhead: $480,000
Actual manufacturing overhead: $440,000
Budgeted machine hours: 20,000
Actual machine hours: 16,000
First, we need to calculate the manufacturing overhead rate:
manufacturing overhead rate= total estimated manufacturing overhead/ total amount of allocation base
manufacturing overhead rate= 480000/20000= 424 per hour
Allocated manufacturing overhead= overhead rate*actual hours= 24*16000= 384,000
