At the beginning of the year, managers at Horizon Industries estimated the following: Estimated Manufacturing Overhead = $540,000 Estimated Direct Labor Hours = 30,000 Estimated Machine Hours = 50,000 At the end of the year, the actual overhead incurred was $565,000. The company used 32,500 direct labor hours and 48,000 machine hours during the year. If overhead is applied based on machine hours, how much overhead was applied during the year?

At the beginning of the year, managers at Horizon Industries estimated the following: Estimated Manufacturing Overhead = $540,000 Estimated Direct Labor Hours = 30,000 Estimated Machine Hours = 50,000 At the end of the year, the actual overhead incurred was $565,000. The company used 32,500 direct labor hours and 48,000 machine hours during the year. If overhead is applied based on machine hours, how much overhead was applied during the year?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 3EB: A company estimated 50,000 direct labor hours and $450,000 in overhead. The actual overhead was...

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