The amount of overhead applied during the year if actual machine houre for the year was 315,000 hours is?

Question

At the beginning of the year, Monroe Company estimates annual overhead costs to 600,000 and that 300,000 machine hours will operated, using machine hours as a base

Answer 1

Overhead costs are estimated at 600,000/300,000 or $2 per machine hr. If machine hrs are 315,000, overhead costs would be 315,000 hrs x $2 = $630,000