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Nataliya [291]
3 years ago
7

Likes Incorporated makes a single product—a cooling coil used in commercial refrigerators. The company has a standard cost syste

m in which it applies overhead to this product based on the standard machine-hours allowed for the actual output of the period. Data concerning the most recent year appear below: Total budgeted manufacturing overhead $ 495,040 Budgeted production (a) 35,000 units Standard hours per unit (b) 1.70 machine-hours Budgeted hours (a) × (b) 59,500 machine-hours Applying Overhead: Actual production (a) 30,000 units Standard hours per unit (b) 1.70 machine-hours Standard hours allowed for the actual production (a) × (b) 51,000 machine-hours Total actual manufacturing overhead $ 498,000 Actual hours 52,000 machine-hours The total amount of manufacturing overhead applied is closest to:
Business
1 answer:
xz_007 [3.2K]3 years ago
3 0

Answer:

Applied overhead = $424,320

Explanation:

Overheads are applied using the predetermined overhead absorption rate (POAR).

T<em>he applied overhead = POAR × standard machine hours allowed for actual actual output.</em>

POAR = Budgeted overheads/Budgeted machine hours

OAR=  $ 495,040 /59,500

        =$8.32

Overhead applied = 8.32  × 30,000× 1,70= 424,320

Applied overhead = $424,320

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Answer:

31.5%

Explanation:

Given from the question kd = 7.0 %

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