Vektek Inc. thinks machine hours is the best activity base for its manufacturing overhead. The estimate of annual overhead costs for its jobs was $2050000. The company used 1000 hours of processing on Job No. B12 during the period and incurred overhead costs totaling $2100000. The budgeted machine hours for the year totaled 20000. How much overhead should be applied to Job No. B12?
A) $2100
B) $102500
C) $105000
D) $2050

Question

Quizplus · Accepted Answer

The Answer of Vektek Inc. thinks machine hours is the best activity base for its manufacturing overhead. The estimate of annual overhead costs for its jobs was $2050000. The company used 1000 hours of processing on Job No. B12 during the period and incurred overhead costs totaling $2100000. The budgeted machine hours for the year totaled 20000. How much overhead should be applied to Job No. B12?
A) $2100
B) $102500
C) $105000
D) $2050