question 8\ntrust company applies overhead based on direct labor hours. at the beginning of the year, trust…

question 8\ntrust company applies overhead based on direct labor hours. at the beginning of the year, trust estimated $700,000, machine hours to be 200,000, and direct labor hours to be 35,000. during february, trust has 5, and 10,000 machine hours.\nwhat is the amount of overhead applied for february?\n(a) $100,000\n(b) $200,000\n(c) $17,500\n(d) $69,500\nquestion 9\nlast saved 7:36:19 pm\nquestions filter (50)

question 8\ntrust company applies overhead based on direct labor hours. at the beginning of the year, trust estimated $700,000, machine hours to be 200,000, and direct labor hours to be 35,000. during february, trust has 5, and 10,000 machine hours.\nwhat is the amount of overhead applied for february?\n(a) $100,000\n(b) $200,000\n(c) $17,500\n(d) $69,500\nquestion 9\nlast saved 7:36:19 pm\nquestions filter (50)

Answer

Explanation:

Step1: Calculate the predetermined overhead rate

The company applies overhead based on direct - labor hours. The estimated overhead is $700,000 and the estimated direct - labor hours are 35,000. The predetermined overhead rate ($r$) is calculated as $r=\frac{\text{Estimated Overhead}}{\text{Estimated Direct Labor Hours}}=\frac{700000}{35000}=20$ per direct - labor hour.

Step2: Calculate the overhead applied in February

In February, the actual direct - labor hours are 5,000. The overhead applied ($O$) is calculated by multiplying the predetermined overhead rate by the actual direct - labor hours. So $O = r\times\text{Actual Direct Labor Hours}=20\times5000 = 100000$.

Answer:

A. $100,000