Trevigne Corporation uses a predetermined overhead rate base on machine-hours that it recalculates at the beginning of each year. The company has provided the following data for the most recent year.?Estimated total fixed manufacturing overhead from the beginning of the year$114,000??Estimated activity level from the beginning of the year10,000machine-hours?Actual total fixed manufacturing overhead$104,000??Actual activity level9,400machine-hoursRequired:Determine the amount of manufacturing overhead that would have been applied to all jobs during the period.

What will be an ideal response?



?Estimated total fixed manufacturing overhead (a)$114,000?
?Estimated activity level (b)10,000 machine-hours
?Predetermined overhead rate (a) ÷ (b)$11.40 per machine-hour
?Actual activity level9,400 machine-hours
?Manufacturing overhead applied$107,160?

Business

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