Ask Question
BusinessBusiness
27 April, 19:56

Scottso Corporation applies overhead using an actual costing approach. Budgeted factory overhead was $266,400, budgeted machine-hours were 18,500. Actual factory overhead was $287,920, actual machine-hours were 19,050. How much overhead would be applied to production? a. $266,400. b. $274,320. c. $279,607. d. $287,920.

+1
Answers (1)
  1. 27 April, 22:59
    0
    Option (b) is correct.

    Explanation:

    Given that,

    Budgeted factory overhead = $266,400,

    Budgeted machine-hours = 18,500

    Actual factory overhead = $287,920,

    Actual machine-hours = 19,050

    Budgeted rate:

    = Budgeted factory overhead : Budgeted machine-hours

    = $266,400 : 18,500

    = $14.4

    Overhead allocated:

    = Actual machine-hours * Budgeted rate

    = 19,050 * $14.4

    = $274,320

    Here, the allocated overhead is less than the actual factory overhead. Hence, the overhead is under-allocated.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Scottso Corporation applies overhead using an actual costing approach. Budgeted factory overhead was $266,400, budgeted machine-hours were ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
S Corporation makes 35,000 motors to be used in the production of its sewing machines. The average cost per motor at this level of activity is: Direct materials $ 9.40 Direct labor $ 8.40 Variable manufacturing overhead $ 3.
Answers (1)
The four conditions (mutual exclusion, hold and wait, no preemption and circular wait) are necessary for a resource deadlock to occur. Give an example to show that these conditions are not sufficient for a resource deadlock to occur.
Answers (1)
On November 1, Year 1 Dixon Company paid $20 per share to buy back 1,000 shares of its $8 par value common stock. The stock had originally sold for $15. On December 15, Year 1 Dixon sold 400 shares of the treasury stock at $24 per share.
Answers (1)
If interest rates are at the zero lower bound:A. the effectiveness of monetary policy increases. B. monetary policy is not very effective. C. automatic stabilizers don't work. D. monetary policy is more effective than fiscal policy
Answers (1)
What is the most common threat to information security in an organization?
Answers (1)
New Questions in Business
Meeting others through volunteer work is the most common way people expand their network.
Answers (1)
Explain the natural and necessary shifts of resources in a market economy.
Answers (1)
In a pure market economy, the government controls most actions. A. True False
Answers (2)
In the 19th century, when crop failures often led to bank runs, banks would make relatively fewer loans and hold relatively more excess reserves. By itself, these actions by the banks should have a.
Answers (1)
Jenny sells lemonade in front of her house in the summer. Several other kids in Jenny's neighborhood also run lemonade stands in the summer.
Answers (1)
Home » Business » Scottso Corporation applies overhead using an actual costing approach. Budgeted factory overhead was $266,400, budgeted machine-hours were 18,500. Actual factory overhead was $287,920, actual machine-hours were 19,050.
Sign Up Forgot Password?