Blakely Charges Manufacturing Overhead to Products by Using a Predetermined

Multiple Choice

Blakely charges manufacturing overhead to products by using a predetermined application rate, computed on the basis of machine hours.The following data pertain to the current year: Budgeted manufacturing overhead: $480,000 Actual manufacturing overhead: $440,000 Budgeted machine hours: 20,000 Actual machine hours: 16,000 Overhead applied to production totaled:

A) $352,000.
B) $384,000.
C) $550,000.
D) $600,000.
E) None of these choices are correct.