Problem:
Carson company uses a predetermined rate to apply over head. At the beginning of the year, carlson estimaed its overhead costs at $320,000, direct labor hours at 45,000. and machine hours at 20,000. Actual overhead costs omcirred were $274,860, actual direct labor hours were 43,000, and actual machine hours were 16,000.
Requirement:
Question: If the predertimed overhead rate is base on machine hours, what is the total amount credited to the factory overhead account for the year for carlson?
Note: Please show the work not just the answer.