Acton Corporation, which applies manufacturing overhead on the basis of machine-hours, has provided the following data for its most recent year of operations.
|
Estimated manufacturing overhead |
$139,080 |
|
Estimated machine-hours |
3,800 |
|
Actual manufacturing overhead |
$137,000 |
|
Actual machine-hours |
3,780 |
The estimates of the manufacturing overhead and of machine-hours were made at the beginning of the year for the purpose of computing the company”s predetermined overhead rate for the year.