Whitney Company Uses a Predetermined Rate to Apply Overhead

question 43

Multiple Choice

Whitney Company uses a predetermined rate to apply overhead.At the beginning of the year,Whitney estimated its overhead costs at $280,000,direct labour hours at 40,000,and machine hours at 10,000.Actual overhead costs incurred were $289,000,actual direct labour hours were 41,000,and actual machine hours were 11,000. Suppose the predetermined overhead rate is based on machine hours.What would be the total amount credited to the factory overhead account for the year for Whitney?

• A)$240,000
• B)$246,000
• C)$249,280
• D)$308,000

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