Assume that a company allocates manufacturing overhead on the basis of machine hours. At the beginning of the year, the company estimated using 60,000 machine hours and $120,000 of manufacturing overhead. The company actually used 65,000 machine hours and incurred $120,000 of manufacturing overhead.
How much manufacturing overhead was applied during the year?
$117,000.00
$141,000.00
$120,000.00
$130,000.00