Giants Company had the following information: $$\begin{array} { l r }
\text { Budgeted factory overhead } & \$ 80,000 \
\text { Actual factory overhead } & \$ 82,000 \
\text { Budgeted: Machine hours } & 40,000 \
\text { Actual: Machine hours } & 39,500
\end{array}$$ The overhead applied for a company that uses 10,000 machine hours is _____.
A)$20,000
B)$20,250
C)$20,500
D)$28,750

Question

Giants Company had the following information: $$\begin{array} { l r } 
\text { Budgeted factory overhead } & \$ 80,000 \
\text { Actual factory overhead } & \$ 82,000 \
\text { Budgeted: Machine hours } & 40,000 \
\text { Actual: Machine hours } & 39,500
\end{array}$$ The overhead applied for a company that uses 10,000 machine hours is _____.
A)$20,000
B)$20,250
C)$20,500
D)$28,750

Quizplus · Accepted Answer

The overhead rate is calculated based on budgeted figures: $80,000 / 40,000 hours = $2 per machine hour. For 10,000 machine hours, the applied overhead is 10,000 hours * $2/hour = $20,000.

Giants Company Had the Following Information The Overhead Applied for a Company That Uses 10,000 Machine