MACHINE HOURS ACTIVITY BASE
Tools Company uses machine hours for its activity base for manufacturing overhead. The estimate of overhead costs for year on its job = $205,000, and the company use 1,000 hours of processing on JOB A during that period and incurred overhead costs of $210,000.
The budgeted machine hours for the year totaled 20,000.
How much overhead should be applied to job A?© BrainMass Inc. brainmass.com June 3, 2020, 8:46 pm ad1c9bdddf
Please see the response to your posting as below:
Estimated overheads = $205,000
Estimated machine hours ...
Solution contains calculations of overheads allocated to the product using activity based costing.