Question

Acton Corporation, which applies manufacturing overhead on the basis of machine-hours, has provided the following data for its most recent year of operations. Estimated manufacturing overhead $132,440 Estimated machine-hours 2,800 Actual manufacturing overhead $128,600 Actual machine-hours 2,750 The estimates of the manufacturing overhead and of machine-hours were made at the beginning of the year for the purpose of computing the company's predetermined overhead rate for the year. The overhead for the year was:

Answer 1

The overhead for the year was: $130,075.

Step-by-step explanation:

We have the following formula to determine overhead for the year:

+ Overhead for the year = Predetermined overhead rate ($ per machine hour) x Actual machine hours;

in which:

+ Predetermined overhead rate = Estimated manufacturing overhead / Estimated machine-hours = 132,440 / 2,800 = $47.3/machine hour.

+ Actual machine hours is given at 2,750 hours.

=> Overhead for the year = Predetermined overhead rate ($ per machine hour) x Actual machine hours = 47.3 x 2,750 = $130,075.

So, the answer is $130,075.

Answer 2

The overhead for the year was $130,075

Step-by-step explanation:

GIVEN INFORMATION -

ESTIMATED ACTUAL

Manufacturing overhead $132,440 $128,600

Machine hours 2800 2750

Here for calculating the overhead for the year we will use the following formula =

\frac{Estimated Manufacturing Overhead}{Estiamted Machine Hours}\times Actual Machine Hours

= \frac{\$132,440}{2800}\times 2750

\$47.3\times 2750 = \$130,075

Therefore the overhead for the year was $130,075