7 . Manufacturing overhead is allocated to products based on the number of machi

Question

7.

Manufacturing overhead is allocated to products based on the number of machine hours required. In a year when 20,000 machine hours were anticipated, costs were budgeted at $125,000. If a product requires 8,000 machine hours, how much manufacturing overhead will be allocated to this product?

A)

$41,667

B)

$43,750

C)

$1,120

D)

$50,000

7.

Manufacturing overhead is allocated to products based on the number of machine hours required. In a year when 20,000 machine hours were anticipated, costs were budgeted at $125,000. If a product requires 8,000 machine hours, how much manufacturing overhead will be allocated to this product?

A)

$41,667

B)

$43,750

C)

$1,120

D)

$50,000

Explanation / Answer

D)

$50,000

D)

$50,000

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