Carlson Company Uses a Predetermined Rate to Apply Overhead

question 49

Multiple Choice

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 Carlson?

• A) $249,280
• B) $246,000
• C) $240,000
• D) $264,000

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