Stealth,Inc.produces two types of drones,rotary and fixed wing.Stealth estimated $850,000 of manufacturing overhead,and 62,500 machine hours for the year.The allocation base for overhead costs is machine hours.The rotary model actually consumed 18,000 machine hours,and the fixed wing type consumed 44,500 machine hours.How much overhead is allocated to the rotary model? (Round intermediary calculations to the nearest cent.)
A) $244,800
B) $605,200
C) $180,000
D) $302,600

Question

Quizplus · Accepted Answer

Predetermined overhead rate = $850,000 / 62,500 = $13.60
Overhead allocated = 18,000 hours × $13.60 = $244,800