qs 15-9 (algo) applying overhead lo p3\nat the beginning of the year, a company estimates total overhead…

qs 15-9 (algo) applying overhead lo p3\nat the beginning of the year, a company estimates total overhead costs of $790,400. the company applies overhead using machine hours and estimates it will use 1,520 machine hours during the year.\nwhat amount of overhead should be applied to job 65a if that job uses 25 machine hours that year?\noverhead applied to job 65a

qs 15-9 (algo) applying overhead lo p3\nat the beginning of the year, a company estimates total overhead costs of $790,400. the company applies overhead using machine hours and estimates it will use 1,520 machine hours during the year.\nwhat amount of overhead should be applied to job 65a if that job uses 25 machine hours that year?\noverhead applied to job 65a

Answer

Explanation:

Step1: Calculate overhead rate

The overhead rate is calculated by dividing the total estimated overhead costs by the total estimated machine - hours. The formula is $Overhead\ rate=\frac{Total\ estimated\ overhead\ costs}{Total\ estimated\ machine - hours}$. $Overhead\ rate=\frac{790400}{1520}=520$ (per machine - hour)

Step2: Calculate overhead applied to Job 65A

The overhead applied to Job 65A is calculated by multiplying the overhead rate by the number of machine - hours used for Job 65A. The formula is $Overhead\ applied = Overhead\ rate\times Machine - hours\ for\ Job\ 65A$. $Overhead\ applied=520\times25 = 13000$

Answer:

13000