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Chilton allocates variable manufacturing overhead costs on the basis of machine hours. Chilton budgeted .5 machine hours per lamp and allocates overhead at a rate of $1.80 per machine hour. Last year Chilton manufactured 23,000 lamps, used 13,800 machine hours and incurred actual overhead costs of $15,180.
Tory applies manufacturing overhead to production on the basis of machine-hours, and its normal annual production is 50,000 cases. 4. [CMA Adapted] Toryâs estimated variable manufacturing overhead cost for a month in. which scheduled production is 10,000 cases would be. a. $80,000. b. $480,000.