Question

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.

Answer 1

$256,284

Step-by-step 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