Evaluate manufacturing overhead

Reference no: EM139647

Manufacturing overhead is allocated to products based on the number of machine hours required. In a year when 20,000 machine hours were anticipated, costs were budgeted at $125,000. If a product requires 7,000 machine hours, how much manufacturing overhead will be allocated to this product?

a) $41,667
b) $43,750
c) $1,120
d) $50,000

Reference no: EM139647

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