The manufacturing overhead for the year was a 6000

88. The manufacturing overhead for the year was:
A) $6,000 overapplied
B) $10,000 overapplied
C) $10,000 underapplied
D) $4,000 underapplied
Solution:
Actual manufacturing overhead .................................... $54,000
Applied manufacturing overhead (24,000 × $2.50) ...... 60,000
Overapplied manufacturing overhead ........................... ( $ 6,000 )

Use the following to answer questions 89-91:
Acheson Corporation, which applies manufacturing overhead on the basis of machine-hours, has provided
the following data for its most recent year of operations.
Estimated manufacturing overhead ............ $157,050
Estimated machine-hours ........................... 4,500
Actual manufacturing overhead ................. $156,000
Actual machine-hours ................................ 4,580
The estimates of the manufacturing overhead and of machine-hours were made at the beginning of the
year for the purpose of computing the company's predetermined overhead rate for the year.
89. The predetermined overhead rate is closest to:
90. The applied manufacturing overhead for the year is closest to:
91. The overhead for the year was:

C) $2,792 overapplied
D) $3,842 underapplied
Solution:
Estimated total manufacturing overhead ...................... $157,050
÷ Estimated total machine-hours (MHs) ....................... 4,500 MHs
= Predetermined overhead rate ..................................... $34.90 per MH
Applied manufacturing Predetermined Actual
= × overhead overhead rate
machine-hours
Applied manufacturing overhead = $34.90 × 4,580
= $159,842
Actual manufacturing overhead ............... $156,000
Applied manufacturing overhead ............ 159,842
Overapplied manufacturing overhead ..... ( $ 3,842 )
Use the following to answer questions 92-94:
Baka Corporation applies manufacturing overhead on the basis of direct labor-hours. At the beginning of
the most recent year, the company based its predetermined overhead rate on total estimated overhead of
$239,700 and 4,700 estimated direct labor-hours. Actual manufacturing overhead for the year amounted to
$242,000 and actual direct labor-hours were 4,600.
92. The predetermined overhead rate for the year was closest to:
A) $52.61
B) $49.91
C) $51.00
D) $51.49
Solution:
Estimated total manufacturing overhead ...................... $239,700
÷ Estimated total direct labor-hours (DLHs) ................ 4,700 DLHs =
Predetermined overhead rate ..................................... $51.00 per
DLH