Vektek Inc. thinks machine hours is the best the activity base for its manufactu

Question

Vektek Inc. thinks machine hours is the best the activity base for its manufacturing overhead. The estimate of annual overhead costs for its jobs was $615000. The company used 1,000 hours of processing on job #B12 during the period and incurred overhead costs totaling $630000. The budgeted machine hours for the year totaled 20,000. How much overhead should be applied to job #B12? Question 15 options: 37500 615 31500 630 Vektek Inc. thinks machine hours is the best the activity base for its manufacturing overhead. The estimate of annual overhead costs for its jobs was $615000. The company used 1,000 hours of processing on job #B12 during the period and incurred overhead costs totaling $630000. The budgeted machine hours for the year totaled 20,000. How much overhead should be applied to job #B12? Vektek Inc. thinks machine hours is the best the activity base for its manufacturing overhead. The estimate of annual overhead costs for its jobs was $615000. The company used 1,000 hours of processing on job #B12 during the period and incurred overhead costs totaling $630000. The budgeted machine hours for the year totaled 20,000. How much overhead should be applied to job #B12? 37500 615 31500 630 37500 615 31500 630 37500 615 31500 630

Explanation / Answer

Overhead applied to job #B12 = Pre determined overhead rate * number of hours processing for job #B12

Pre determined overhead rate = $630,000/ 20,000 = $31.50 per machine hour

Overhead applied to job #B12 = $31.50 * 1,000 = $31,500

Related Questions

Navigate

• Browse (All)
• Browse V
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.