Lennox Industries uses a predetermined overhead rate based on machine-hours to apply overhead to production. Last year, Lennox incurred $240,000 of actual manufacturing overhead and used 80,000 machine-hours. This year, Lennox estimated overhead costs to be $320,000, and expected to use 100,000 machine-hours. The company actually incurred $350,000 of overhead and used 110,000 machine-hours. What is the manufacturing overhead applied to production this year?

Lennox Industries uses a predetermined overhead rate based on machine-hours to apply overhead to production. Last year, Lennox incurred $240,000 of actual manufacturing overhead and used 80,000 machine-hours. This year, Lennox estimated overhead costs to be $320,000, and expected to use 100,000 machine-hours. The company actually incurred $350,000 of overhead and used 110,000 machine-hours. What is the manufacturing overhead applied to production this year?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter4: Job Order Costing

Section: Chapter Questions

Problem 2PB: Rulers Company is a neon sign company that estimated overhead will be $60,000, consisting of 1,500...

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