At the beginning of the year Monroe Company estimates annual overhead costs to be $2400000 and that 300000 machine hours will be operated. Using machine hours as a base the amount of overhead applied during the year if actual machine hours for the year was 315000 hours is

A) $2400000.
B) $2285714.
C) $1680000.
D) $2520000.

Machine Hours

The total running time of a machine during a specific period, often used as a basis for allocating manufacturing overhead.

Annual Overhead Costs

The total expenses related to the operation of a business that are not directly tied to a specific product or service, accumulated yearly.

Overhead Applied

An accounting method that allocates overhead costs based on a predetermined rate to individual products or job orders.