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Fusaro Corporation uses a predetermined overhead rate base on machine-hours that it recalculates at the beginning of each year. The company has provided the following data for the most recent year. Estimated total fixed manufacturing overhead from the beginning of the year $ 684,000 Estimated activity level from the beginning of the year 40,000 machine-hours Actual total fixed manufacturing overhead $ 616,000 Actual activity level 37,700 machine-hours The amount of manufacturing overhead that would have been applied to all jobs during the period is closest to:_________ (Round your intermediate calculations to 2 decimal places.) Garrison 16e Rechecks 2017-06-28, 2017-08-01 a) $644,670 b) $684,000 c) $68,000 d) $580,580

Answer

Based on the given data, the amount of manufacturing overhead that would have been applied to all jobs during the period is approximately $644,670. Explanation: To determine the amount of manufacturing overhead that would have been applied to all jobs during the period, we first need to calculate the predetermined overhead rate. The estimated total fixed manufacturing overhead from the beginning of the year is $684,000, and the estimated activity level is 40,000 machine-hours. Therefore, the predetermined overhead rate is $17.10 ($684,000 ÷ 40,000) per machine hour. Next, we need to determine the actual total fixed manufacturing overhead and the actual activity level for the period. The actual total fixed manufacturing overhead is given as $616,000, and the actual activity level is 37,700 machine-hours. To calculate the amount of manufacturing overhead applied during the period, we multiply the actual activity level by the predetermined overhead rate. Thus, the amount of manufacturing overhead applied during the period is $644,670 (37,700 × $17.10).