Smith Paints Allocates Overhead Based on Machine Hours The Estimates Were Made as of the Beginning of the the Most

question 2

Multiple Choice

Smith Paints allocates overhead based on machine hours.Selected data for the most recent year follow. $$\begin{array} { | l | r | } \hline \text { Estimated manufacturing overhead cost } & \$ 250,000 \\\hline \text { Actual manufacturing overhead cost } & \$ 230,000 \\\hline \text { Estimated machine hours } & 20,000 \\\hline \text { Actual machine hours } & 21,000 \\\hline\end{array}$$ The estimates were made as of the beginning of the year,while the actual results were for the entire year.
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The predetermined manufacturing overhead rate per machine hour is closest to:

• A)$11.90.
• B)$10.95.
• C)$12.50.
• D)$11.50.

Apply overhead to jobs using a plantwide predetermined manufacturing overhead rate.

Determine the selling price for units by marking up unit product costs.

Understand how to calculate the amount of overhead applied to specific jobs.

Calculate the selling price for products by applying a markup to unit product costs.

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