Question

2 points (Extract Giles Inc. Giles Inc., manufactures high quality golling equipment Giles assigns overhead to products based on machine hours. At the beginning of the current year, estimated overhead costs were 5620750 and estimated machine hours were 65.000 During the year, 54.000 machine hours were actually used. By the end of the year, actual overhead costs were calculated to be $529,200 Refer to the Giles Inc. information above What was the predetermined overhead rate? $10.00 per machine hour $9.55 per machine hour $ 980 per machine hour $10 58 per machine hour QUESTION 2 points (Extra Credit Giles Inc. Gles inic manufactures high quality going equipment Gilles assigns overhead to products based on machine hours. At the beginning of the current year estimated overhead costs were $620 750 and estimated machine hours were 65.000 During the yea, 54000 machine hours were actually used By the end of the year actual overhead costs were calculated to be 5529 200 Refer to the Gles Inc information above How much total overhead was applied to products during the year? 5571536 $540.000 $515.700 $529 200 t sellers che Save and submit to me and submit. Click Se All Save o search

Answer 1

SOLUTION : 1
CALCULATION OF PREDETERMINED OVERHEAD RATE
Predetermined overhead rate = Estimated overhead cost / Estimated machine hours
Predetermined overhead rate = $ 620,750 / 65,000 Machine Hours
Predetermined overhead rate = $ 9.55 Per machine hours
Answer = Predetermined overhead rate = $ 9.55 Per Machine hour
SOLUTION : 2
CALCULATION OF TOTAL OVERHEAD APPLIED
Overhead applied = Predetermined overhead rate X actual machine hours used
Overhead applied = $ 9.55 Per Machine hours X 54,000 Machine Hours
Overhead applied = $ 515,700
Answer = Overhead applied = $ 515,700