Question

Bernson Corporation is using a predetermined overhead rate that was based on estimated total fixed manufacturing overhead of $492,000 and 30,000 machine-hours for the period. The company incurred actual total fixed manufacturing overhead of $517,000 and 28,300 total machine-hours during the period. The amount of manufacturing overhead that would have been applied to all jobs during the period is closest to: (Round your intermediate calculations to 2 decimal places.)

Answer 1

Answer: $‭464,120‬

Explanation:

Find the predetermined overhead rate:

= Estimated fixed manufacturing overhead / estimated machine hours

= 492,000/30,000

= $16.40

The actual machine hours for the period was 28,300 hours.

Manufacturing overhead applied would be:

= Predetermined rate * actual machine hours

= 16.4 * 28,300

= $‭464,120‬