Exercise D4-11

Beltran Corporation produces wooden and aluminum baseball bats. In preparing the current budget, Beltran's management estimated a total of $500,000 in manufacturing overhead costs and 10,000 machine hours for the coming year. In December, Beltran's accountants reported actual manufacturing overhead incurred of $650,000 and 10,500 machine hours used during the year. Beltran applies overhead based on machine hours.

What was Beltran's predetermined overhead rate for the year?

Predetermined overhead rate$

/ machine hour

How much manufacturing overhead did Beltran apply during the year?

Applied overhead$