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How much overhead should be applied to job no

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Reference no: EM132693416

Problem 1: Waterway Industries thinks machine hours is the best activity base for its manufacturing overhead. The estimate of annual overhead costs for its jobs was $3050000. The company used 1000 hours of processing on Job No. B12 during the period and incurred overhead costs totaling $2900000. The budgeted machine hours for the year totaled 20000. How much overhead should be applied to Job No. B12?

Option 1: $2900

Option 2: $145000

Option 3: $3050

Option 4: $152500

Reference no: EM132693416

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