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

question 224

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 amount of manufacturing overhead allocated for the year based on machine hours would have been:

• A)$230,000.
• B)$240,000.
• C)$250,000.
• D)$262,500.

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