Question

Smith Paints allocates overhead based on machine hours. Selected data for the most recent year follow.

Overhead Rate per hour: $12.70
Estimated machine hours: 20,010
Actual machine hours: 20,649
The amount of manufacturing overhead allocated for the year based on machine hours would have been:
A) $255,213
B) $258,294
C) $263,073
D) $208,011

Answer 1

The amount of manufacturing overhead allocated for the year based on machine hours would have been $262,438.30.

Step-by-step explanation:

To calculate the amount of manufacturing overhead allocated for the year based on machine hours, you need to multiply the overhead rate per hour by the actual machine hours.

Calculations:

Overhead allocated = Overhead rate per hour * Actual machine hours

Plugging in the values:

Overhead allocated = $12.70 * 20,649

Overhead allocated = $262,438.30

Therefore, the amount of manufacturing overhead allocated for the year based on machine hours would have been $262,438.30.