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Poole Company applies manufacturing overhead (MOH) using a pre-determined overhead rate (POHR) based on machine hours (MHs) with the following information for the period MHs
Poole Company applies manufacturing overhead (MOH) using a pre-determined overhead rate (POHR) based on machine hours (MHs) with the following information for the period MHs estimated for the period 250,000 258,000 Hs actually incurred in the period POHR for the period Actual MOH for the period 5.50 per MH $1,410,000 The activity for the period was significantly less than Poole's capacity of 275,000 MHs, and so the CEO has asked about the impact of using a POHR based on capacity. If this is done, how much lower will the company's applied MOH be versus the traditional method? 87,720 129,000 96,164 85,000 None of the above A. S E
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