Vektek Inc

question 14

Multiple Choice

Vektek Inc. thinks machine hours is the best activity base for its manufacturing overhead. The estimate of annual overhead costs for its jobs was $2050000. The company used 1000 hours of processing on Job No. B12 during the period and incurred overhead costs totaling $2100000. The budgeted machine hours for the year totaled 20000. How much overhead should be applied to Job No. B12?

• A) $2100
• B) $102500
• C) $105000
• D) $2050

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