How much overhead would be charged

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Question - Stargazer Company logged 7,250 machine hours for the month of June. P42,500 was spent for manufacturing overhead is allocated on the basis of machine hours. The company operates 5 departments; however, one department was closed for the month of June due to poor market conditions for its product. It was decided that this department (#3) should be allocated a lump sum of P5,000 as its share of June overhead. If this policy is followed, how much overhead would be charged to Department 2, which used 1,750 machine hours?

Reference no: EM133166408

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