6 September, 04:54

# 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. \$235,700 \$244,400 20,800 22,600 The amount of manufacturing overhead allocated for the year based on machine hours would have been (Round intermediary calculations to the nearest cent and final answer to the nearest dollar.)A. \$235,700.B. \$224,935.C. \$256,058.D. \$244,400.

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1. 6 September, 06:31
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C. \$256,058.

Explanation:

George Chemicals uses machine hours for overhead allocation,

Estimated manufacturing overhead cost is \$235,700,

Actual manufacturing cost is \$244,400

Estimated Machine hours 20,800

Actual Machine hours 22,600

To identify predetermined Manufacturing overhead allocation rate per machine hour:

Estimated manufacturing overhead cost / Estimated Machine hours

\$235,700 / 20,800 = \$11.33 per machine hour.

To calculate amount of manufacturing overhead allocated for the year based on machine hours;

Overhead allocation rate * Actual machine hours

\$11.33 per machine hour * 22,600 machine hours

= \$256,058.