Final answer:
The amount of overhead applied is calculated using the predetermined overhead rate (POR), which is based on estimated annual overhead costs and estimated machine hours. With a POR of $7.50 per machine hour and actual machine hours of 300,000, the applied overhead is $2,250,000.
Step-by-step explanation:
To calculate the amount of overhead applied during the year, we first need to determine the predetermined overhead rate, which is done by dividing the estimated annual overhead costs by the estimated machine hours.
Bonita Company estimates annual overhead costs to be $2,400,000 and that 320,000 machine hours will be operated. Using this information, we calculate the predetermined overhead rate as follows:
Predetermined Overhead Rate (POR) = Estimated Overhead Costs / Estimated Machine Hours
POR = $2,400,000 / 320,000 Machine Hours
POR = $7.50 per Machine Hour
Now, we need to multiply the actual machine hours during the year by the predetermined overhead rate to find the applied overhead:
Applied Overhead = Actual Machine Hours * Predetermined Overhead Rate
Applied Overhead = 300,000 Machine Hours * $7.50 per Machine Hour
Applied Overhead = $2,250,000
Therefore, the correct answer is a. $2,250,000.