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Problem - Baldwin Printing Company uses a job order cost system and applies overhead based on machine hours. A total of 150,000 machine hours have been budgeted for the year. During the year, an order for 1,000 units was completed and incurred the following:
Direct material costs $1,000
Direct labor costs $1,500
Actual overhead $1,980
Machine hours 450
The accountant computed the inventory cost of this order to be $4.30 per unit. Find the annual budgeted overhead in dollars?
a. $577,500.
b. $600,000.
c. $645,000.
d. $660,000.
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