Question

At the beginning of the year, a company predicts total overhead costs of $916,400. The company applies overhead using machine hours and estimates it will use 1,580 machine hours during the year. What amount of overhead should be applied to Job 65A if that job uses 31 machine hours during January?

Answer 1

Answer: $17980

Step-by-step explanation:

The amount of overhead that should be applied to Job 65A would be calculated as:

= Overhead cost × (Machine hours in January/Total machine hours)

= 916400 × (31/1580)

= $17980