George's Chemicals allocates overhead based on machine hours. Selected data for the most recent year follow. Estimated manufacturing overhead cost $235,900 Actual manufacturing overhead cost $244,600 Estimated machine hours 20,800 Actual machine hours 22,600 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.) $256,284. $244,600. $225,119. $235,900.

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andromache andromache · Answer 1 · 2019-10-05T08:24:32+02:00

Answer:

$256,284

Explanation:

The computation is shown below:

First, Calculate the predetermined overhead rate per hour which equals to

= (Estimated manufacturing Overhead cost ÷ estimated machine hours)

= ($235,900 ÷ 20,800 hours)

= $11.34 per hour

So, the applied overhead or manufacturing overhead allocated equals to

= Predetermined overhead rate per hour × actual machine hours

= $11.34 per hour × 22,600 hours

= $256,284