Caber corporation applies manufacturing overhead on the basis of machine-hours. at the begining of the most recent year, the company based it predetermined overhead rate on total estimated overhead of $60,600. Actual manufacturing overhead for the year amounted to $59,000 and actual machine-hours were 5,900. The company's predetermined overhead rate for the year was $10.10 per machine-hour.
a. The pre-determined overhead rate was based on how many estimated machine-hours?
A. 5,783.
B. 6,000.
C. 5,900.
D. 5,842 24.
b. The applied manufacturing overhead for the year was closest to:_.
A. $58,017.
B. $59,590.
C. $60,600.
D. $58,597.
c. The overhead for the year was:_.
A. $1,010 underapplied.
B. $590 overapplied.
C. $590 underapplied.
D. $1,010 overapplied.

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andromache andromache · Answer 1 · 2021-07-12T04:25:05+02:00

Answer and Explanation:

The calculation of each part is given below:

a. The estimated machine hours is

= $60,600 ÷ 10.10

= 6,000 machine hours

b. The applied manufacturing overhead is

= 5,900 × $10.10

= $59,590

c. The overhead should be

= $60,600 - $59,590

= $1,010 underapplied

In this way each and every part should be determined

So the same should be considered and relevant

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