Factory Containers Allocates Overhead Based on Machine Hours

question 87

Multiple Choice

Factory Containers allocates overhead based on machine hours.Estimated overhead costs for the year total $68,000 and the company estimates that it will use 16,000 machine hours during the year.Actual overhead for the year was $62,250 and the company used 15,000 machine hours.If Job J33 requires 420 machine hours, how much overhead will be allocated to Job J33?

• A)$1,743
• B)$1,904
• C)$1,634
• D)$1,785

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Definitions:

Product-oriented Layouts

Layouts designed to streamline production by arranging equipment and processes in sequences that align with the product flow.

In-process Inventories

Goods and materials that are currently within the manufacturing process but not yet completed.

Equipment Assignments

The process of allocating machines, tools, or other equipment to specific jobs or locations within an operation.

Layout Type

Refers to the arrangement or setup of resources, such as machinery and equipment in a factory, which affects workflows and operational efficiency.