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x WileyPLUS e | https://edugen wileyplus.com/edugen/student/mainfr.uni Anna Chme

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Question

x WileyPLUS e | https://edugen wileyplus.com/edugen/student/mainfr.uni Anna Chmelar Obitu: Imported From IE WileyPLUS: MyWileyPLUS I Help I Contact Us I Log Out PRINCIPLES OF ACCOUNTING (ACC 211 and 212) S Kimmel, Accounting, 6e Assignment Gradebook ORION Downloadable eTextboolk actice nment NEXT CALCULATOR MESSAGE MY INSTRUCTOR FULL SCREEN PRINTER VERSION BACK Multiple Choice Question 82 Vaughn Manufacturing thinks machine hours is the best activity base for its manufacturing overhead. The estimate of annual overhead costs for its jobs was $1350000. The company used 1000 hours No. B12? g the period and incurred overhead costs totaling $1400000. The budgeted machine hours for the year totaled 20000. How much overhead should be applied to Job O $1350 $1400 $67500 $70000 LINK TO TEXT Question Attempts: 0 of 1 used SAVE FOR LATER SUBMIT ANSWER Version 4.24.5.1 m/eduger testi aglist.uni?ida asrnm2132422#N 100FD

Explanation / Answer

Predetermined Overhead Rate = Budgeted Overhead/Budgted Machine Hours

= $1,350,000/20,000 machine hours = $67.50 per machine hour

Total Machine Hours used in Job No. 812 = 1,000 Machine hours

Overhead Applied to Job No. 812 = Machine Hours used*Predetermined OH rate

= 1,000 Machine Hours*$67.50 per machine hour

= $67,500

Therefore the correct answer is $67,500.