Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

XLR Inc. estimates that the yearly overhead costs are $90,000 and the machine hours are estimated at 24,000 hours per year. Manufacturing overhead is applied

XLR Inc. estimates that the yearly overhead costs are $90,000 and the machine hours are estimated at 24,000 hours per year. Manufacturing overhead is applied using a predetermined overhead rate based on the number of machine hours. Under normal circumstances the factory would operate for 2,100 machine hours for the month of March. However, due to some unexpected maintenance 10 machines were out of service for a combined total of 240 hours (during time they would normally be running). The actual overhead expenses for March were:

  • Factory utilities: $1,250
  • Factory building depreciation: $4,650
  • Insurance expense: $1,500

What was the applied manufacturing overhead for the month of March?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting

Authors: Ronald W Hilton

8th Edition

0073526924, 9780073526928

More Books

Students also viewed these Accounting questions

Question

State the uses of job description.

Answered: 1 week ago

Question

Explain in detail the different methods of performance appraisal .

Answered: 1 week ago

Question

7. How can an interpreter influence the utterer (sender)?

Answered: 1 week ago