Question Walsh Corporation uses a predetermined overhead rate base on machine-ho

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Question Walsh Corporation uses a predetermined overhead rate base on machine-hours that it recalculates at the beginning of each year. The company has provided the following data for the most recent year Not yet Points out of 2 rologue PFlag question Estimated total fixed manufacturing overhead from the beginning of the year Estimated activity level from the beginning of the year20,000 machine-hours Actual total fixed manufacturing overhead Actual activity level Manual 310,000 S 338,000 18,300 machine-hours urces The amount of manufacturing overhead that would have been applied to all jobs during the period is closest to Select one: O a. $283,650 O b. $310,000 C. $28,000 O d. $309,270 Question 9 Walsh Corporation bases its overhead rate on the estimated labor-hours for the upcoming

Explanation / Answer

The rate at which overhead would be applied can be calculated as below:

Predetermined overhead rate = Estimated overheads/ Budgeted level of activity

= $310000/20000 = $15.50 per hour

Applied overheads = Predetermined overhead rate * Actual activity level

= $15.50 * 18300

= $283650

Option a is correct

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