e https:/ ed Help Save & Exit Sub 2 to The management of Pitt Corporation would

Question

e https:/ ed Help Save & Exit Sub 2 to The management of Pitt Corporation would like to investigate the possibility of basing its predetermined overhead rate on activity at capacity. The company's controlier has provided an example to illustrate how this new system would work. In this example, the allocation base is and the estimated amount of the allocation base for the upcoming year is 69,000 machine-hours. Capacity is 82,000 s and the actual level of activity for the year is assumed to be 72.400 machine-hours. All of the manufacturing overhead is fixed and both the estimated amount at the beginning of the year and the actual amount at the end of the year are assumed to be $4,130,340 per year. It is assumed that a number of jobs were worked on during the year, one of which was Job Q20L which required 470 machine-hours if the company bases its predetermined overhead rate on the estimated amount of the allocation base for the upcoming year, then the amount of manufacturing overhead charged to Job Q20L is closest to $23,673.90 Prey 20125 lli Next >

Explanation / Answer

overhead rate = estimated MOH/estimated MH's 4130340/69000 59.86 overhead allocated to Job = overhead rate * machine hours 59.86*470 28134.2 answer

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