Vektek, Inc

question 11

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 $1,025,000.The company used 1,000 hours of processing on Job No.B12 during the period and incurred overhead costs totaling $1,050,000.The budgeted machine hours for the year totaled 20,000.How much overhead should be applied to Job No.B12?

• A)$1,050
• B)$51,250
• C)$52,500
• D)$1,025

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Definitions:

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