A company uses machine hours (MHs) to allocate their manufactuing overhead cost with capacity-based method. At the end o

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A Company Uses Machine Hours Mhs To Allocate Their Manufactuing Overhead Cost With Capacity Based Method At The End O 1 (84.15 KiB) Viewed 32 times

A company uses machine hours (MHs) to allocate their manufactuing overhead cost with capacity-based method. At the end of year, the company closes the under/over-applied manufacuturing overhead entirely to cost of goods sold. The company finds that it needs to debit cost of goods sold by $72,200 for this adjustment. Actual machine hours Estimated machine hours for planned production Estimated machine hours at capacity Estimated manufacturing overhead at capacity Actual manufacturing overhead 14,000 MHs 14200 MHs ? MHs $52,398 $416,600 Q. What is the amount of estimated machine hours (MHs) at capacity? ANS. MHs