Tata Company uses a predetermined overhead rate of $45 per machine hour. Estimated machine hours at the beginning of the year were 18,000 and actual machine hours at the end of the year were 18,500. Estimated total manufacturing overhead costs at the beginning of the year are $810,000 and actual total manufacturing overhead costs at the end of the year are $825,000. What is the amount of manufacturing overhead that would have been applied to all jobs during the year?

Tata Company uses a predetermined overhead rate of $45 per machine hour. Estimated machine hours at the beginning of the year were 18,000 and actual machine hours at the end of the year were 18,500. Estimated total manufacturing overhead costs at the beginning of the year are $810,000 and actual total manufacturing overhead costs at the end of the year are $825,000. What is the amount of manufacturing overhead that would have been applied to all jobs during the year?

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter2: Basic Cost Management Concepts

Section: Chapter Questions

Problem 21E: Ellerson Company provided the following information for the last calendar year: During the year,...

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