Question
Carlson Company uses a predetermined rate to apply overhead. At the beginning of the year, Carlson estimated its overhead costs at $210,000, direct labor hours
Carlson Company uses a predetermined rate to apply overhead. At the beginning of the year, Carlson estimated its overhead costs at $210,000, direct labor hours at 17,500, and machine hours at 12,000. Actual overhead costs incurred were $205,600, actual direct labor hours were 22,300, and actual machine hours were 13,800. If the predetermined overhead rate is based on machine hours, what is the total amount credited to the factory overhead account for the year for Carlson?
a. $241,500 b. $267,600 c. $210,000 d. $205,600 e. $306,250 f. $144,000 g. $390,250 h. None of the above
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