The Following Information Is Provided for the Year If Normal Costing Is Used,what Would Be the Budgeted Overhead

question 52

Multiple Choice

The following information is provided for the year:
$\begin{array}{llr} \text { Actual overhead } &\$450,000\\ \text {Actual machine hours worked } &25,000\\\text { Budgeted machine hours} &27,500\\ \text {Applied overhead } &\$487,500\end{array}$
If normal costing is used,what would be the budgeted overhead used to calculate the predetermined rate?

• A)$443,250
• B)$450,000
• C)$487,500
• D)$536,250

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