You are given the following data relating to a company:
|
Estimated manufacturing overhead per year |
USD 24,000 |
|
Expected level of activity per year |
40,000 machine-hours |
|
Predetermined overhead rate |
USD 0.60 per machine-hour |
|
Actual overhead costs incurred during year |
USD 22,500 |
|
Actual machine-hours |
35,000 |