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Carlson Company uses a predetermined rate to apply overhead. At the beginning of the year, Carlson estimated its overhead costs at $240,000, direct labor hours at 40,000, and machine hours at 10,000. Actual overhead costs incurred were $249,280, actual direct labor hours were 41,000 and actual machine hours were 11,000.
Problem 1: If the predetermined overhead rate is based on machine hour, what is the total amount credited to the plantwide overhead account for the year for Carlson?
Option 1: $240,000Option 2: $249,280Option 3: $264,000Option 4: $246,000
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