at the beginning of the year, a company estimates total overhead costs of $1,258,320. the company applies…

at the beginning of the year, a company estimates total overhead costs of $1,258,320. the company applies overhead using machine - hours and estimates that it will use 2,940 machine hours during the year. what amount of overhead should be applied to a job that uses 25 machine - hours that year? multiple choice $8,560 $8,025 $10,700 $5,350 $2,675

at the beginning of the year, a company estimates total overhead costs of $1,258,320. the company applies overhead using machine - hours and estimates that it will use 2,940 machine hours during the year. what amount of overhead should be applied to a job that uses 25 machine - hours that year? multiple choice $8,560 $8,025 $10,700 $5,350 $2,675

Answer

Explanation:

Step1: Calculate overhead rate

Overhead rate = Total estimated overhead costs / Total estimated machine - hours. Given total estimated overhead costs of $1,258,320 and total estimated machine - hours of 2,940. So, the overhead rate = $\frac{1258320}{2940}=428$.

Step2: Calculate overhead applied to the job

Overhead applied to the job = Overhead rate × Machine - hours used for the job. The machine - hours used for the job is 25. So, overhead applied = $428\times25 = 10700$.

Answer:

$10,700