The overhead applied to products during the period was closest to:

A) $30,000
B) $30,240
C) $27,300
D) $29,400

Question

The overhead applied to products during the period was closest to:A) $30,000B) $30,240C) $27,300D) $29,400

Joshua Adams · Accepted Answer

Final Answer : B, Explanation :  Predetermined overhead rate = Budgeted total overhead ÷ Denominator level of activity= ($12,040 + $17,360)÷ 1,400 hours= $29,400 ÷ 1,400 hours= $21.00 per hourOverhead applied = Predetermined overhead rate × Standards hours allowed for the actual output= $21.00 per hour × 1,440 hours= $30,240

The overhead applied to products during the period was closest to:

A) $30,000
B) $30,240
C) $27,300
D) $29,400

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