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    Overhead allocation

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    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
    https://brainmass.com/business/accounting/overhead-allocation-152017

    Solution Preview

    Hi,
    Please see the response to your posting as below:
    Estimated overheads = $205,000
    Estimated machine hours ...

    Solution Summary

    Solution contains calculations of overheads allocated to the product using activity based costing.

    $2.19

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