Carlson Company uses a predetermined rate to apply overhead. At the beginning of the year, Carlson estimated its overhead costs at $240,000, direct labor hours at 40,000, and machine hours at 10,000. Actual overhead costs incurred were $249,280, actual direct labor hours were 41,000, and actual machine hours were 11,000. If the predetermined overhead rate is based on machine hours, what is the total amount credited to the plantwide overhead account for the year for Car

Respuesta :

Answer:

$264,000

Explanation:

For computing the Total amount, first, we have to compute the predetermined overhead rate. The formula is shown below:

Predetermined overhead rate = (Total estimated overhead costs) ÷ (estimated machine hours)

= $240,000 ÷ 10,000 hours

= $24

Now the total amount would be

= Predetermined overhead rate  × actual machine hours

= $24 × 11,000 machine hours

= $264,000