Thomas Company uses a predetermined overhead rate of $32 per machine hour. Estim
ID: 2576784 • Letter: T
Question
Thomas Company uses a predetermined overhead rate of $32 per machine hour. Estimated machine hours at the beginning of the year were 14,000 and actual machine hours at the end of the year were 14,200. Estimated total manufacturing overhead costs at the beginning of the year are $448,000 and actual total manufacturing overhead costs at the end of the year are $456,000. What is the amount of manufacturing overhead that would have been applied to all jobs during the year?
$454,400
$449,577
$448,000
$456,000
$454,400
$449,577
$448,000
$456,000
Explanation / Answer
Answer:
Manufacturing overhead that would have been applied to all jobs during the year= $454,400
Working notes for the above answer is as under
Manufacturing overhead applied$
Applied manufacturing overhead
= actual direct labor-hours X Predetermined overhead rate
= 14,600 X 32
=454,400
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