Martin Manufacturing Assigns Overhead to Jobs Based on Machine Hours

question 41

Multiple Choice

Martin Manufacturing assigns overhead to jobs based on machine hours.At the beginning of the current year,estimated overhead costs were $200 000 and estimated machine hours were 40 000.During the year,140 machine hours were used on Job #88.By the end of the year,actual overhead costs were calculated to be $202 500 and actual machine hours were 45 000.
How much overhead was applied to Job #88 during the year?

• A) $630.00
• B) $708.75
• C) $622.22
• D) $700.00

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Definitions:

Income

The amount of money or its equivalent received during a period of time in exchange for labor or services, from the sale of goods or property, or as a profit from financial investments.

Wages

Payment usually received by an employee on a regular basis for services rendered to an employer, often quantified as an hourly, daily, or piecework amount.

Salaries

Regular payments made to employees for their labor, typically based on a fixed annual amount and paid in monthly or biweekly installments.

Rents

Refers to the amount of money paid periodically by a tenant to a landlord for the use of land or property.