Predetermined overhead rate on activity at capacity

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Reference no: EM13749713

Atlanta Inc applies manufacturing overhead based on machine hours. The following information is available for the period:

Machine Hours at Capacity: $79,000

Machine Hours estimated for the period: $68,000

Machine Hours actually incurred during the period: $63,500

Estimated Manufacturing Overhead: $3,384,360

Actual Manufacturing Overhead: $3,642,690

If Atlanta bases its predetermined overhead rate on activity at capacity, how much lower will its applied manufacturing overhead be versus traditional GAAP method?

Reference no: EM13749713

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