Acton 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 $132,440 estimated machine-hours 2,800 actual manufacturing overhead $128,600 actual machine-hours 2,750 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. the overhead for the year was:

The overhead for the year was $130,075

Explanation:

GIVEN INFORMATION -

                                                    ESTIMATED                              ACTUAL

Manufacturing overhead            $132,440                                   $128,600

Machine hours                             2800                                           2750

Here for calculating the overhead for the year we will use the following formula =      

\frac{Estimated Manufacturing Overhead}{Estiamted Machine Hours}\times Actual Machine Hours

= \frac{\$132,440}{2800}\times 2750

\$47.3\times 2750 = \$130,075

Therefore the overhead for the year was $130,075

The overhead for the year was: $130,075.

Explanation:

We have the following formula to determine overhead for the year:

+ Overhead for the year = Predetermined overhead rate ($ per machine hour) x Actual machine hours;

in which:

+ Predetermined overhead rate = Estimated manufacturing overhead  / Estimated machine-hours = 132,440 / 2,800 = $47.3/machine hour.

+ Actual machine hours is given at 2,750 hours.

=> Overhead for the year = Predetermined overhead rate ($ per machine hour) x Actual machine hours = 47.3 x 2,750 = $130,075.

So, the answer is $130,075.

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