Order Online Views Machine Hours as the Best Activity Base

question 24

Multiple Choice

Order Online views machine hours as the best activity base for its manufacturing overhead.The estimate of overhead costs for the year for its jobs was $205,000.The company used 1,000 hours of processing on its Job B12 during the period and incurred overhead costs totalling $210,000.The budgeted machine hours for the year totalled 20,000.How much overhead should be applied to Job B12?

• A)$210
• B)$10,250
• C)$10,500
• D)$205

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Definitions:

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