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Carson company uses a predetermined rate to apply over head. At the beginning of the year, Carlson estimated its overhead costs at $320,000, direct labor hours at 45,000. and machine hours at 20,000. Actual overhead costs occurred were $274,860, actual direct labor hours were 43,000, and actual machine hours were 16,000.
If the predestined overhead rate is base on machine hours, what is the total amount credited to the factory overhead account for the year for carlson?
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Write a report to the owners detailing ALL the different options and considerations that you feel the owners should consider raising the $60 million.
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