contestada

at the beginning of the year, monroe company estimates annual overhead costs to be $1,200,000 and that 300,000 machine hours will be operated. using machine hours as a base, the amount of overhead applied during the year if actual machine hours for the year was 315,000 hours is group of answer choices $1,200,000. $1,142,857. $840,000. $1,260,000.

Respuesta :

rafikiedu08

Using machine hours as a base, the amount of overhead applied during the year if actual machine hours for the year were 315,000 hours is $126,000.

The expected overhead rate needs to be determined: Entire expected period overhead expenses divided by the total amount of the allocation base is the estimated manufacturing overhead rate. 120,000/300,000 or $0.4 per machine hour is the estimated manufacturing overhead rate.

We can now assign overhead: Allocated MOH= Estimated manufacturing overhead rate * Actual amount of allocation base = 0.4*315,000= $126,000.

In general, overhead costs are not assigned to products directly. According to a predetermined allocation rate, it is an indirect cost that is split among various departments and added to the cost of the product or charged to the income statement. The product cannot be allocated directly to overhead. It is distributed to departments in accordance with an established allocation rate.

To learn more about Overhead visit: https://brainly.com/question/29583640

#SPJ4

Otras preguntas