George\'s Chemicals allocates overhead based on machine hours. Selected data for

Question

George's Chemicals allocates overhead based on machine hours. Selected data for the most recent year follow. Estimated manufacturing overhead cost Actual manufacturing overhead cost Estimated machine hours Actual machine hours The estimates were made as of the beginning of the year, while the actual results were for the entire year. $235,800 $244,900 20,900 23,100 The amount of manufacturing overhead allocated for the year based on machine hours would have been final answer to the nearest dollar.) (Round intermediary calculations to the nearest cent and OA. $244,900 O B. $260,568. O C. $235,800. O D. $221,576

Explanation / Answer

B. $260,568

The amount of manufacturing overhead allocated for the year based on machine hours would have been:

= ($235,800 / 20,900) * 23,100

= $260,568

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