The amount of overhead applied in the Machining Department to Job T272 is closest to:

A) $137,600.00
B) $126.00
C) $516.00
D) $564.00

Question

The amount of overhead applied in the Machining Department to Job T272 is closest to:A) $137,600.00B) $126.00C) $516.00D) $564.00

Andrew Legenza · Accepted Answer

Final Answer : C, Explanation :  Machining Department overhead cost = Fixed manufacturing overhead cost + (Variable overhead cost per machine-hour × Total machine-hours in the department)= $104,000 + ($2.10 per machine-hour × 16,000 machine-hours)= $104,000 +$33,600 = $137,600Predetermined overhead rate = Estimated total manufacturing overhead cost ÷ Estimated total amount of the allocation base incurred = $137,600 ÷ 16,000 machine-hours = $8.60 per machine-hourOverhead applied to a particular job = Predetermined overhead rate × Amount of the allocation base incurred by the job = $8.60 per machine-hour × 60 machine-hours = $516

The amount of overhead applied in the Machining Department to Job T272 is closest to:

A) $137,600.00
B) $126.00
C) $516.00
D) $564.00

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