Horizon Manufacturing produces two products: chairs and tables. The total factory overhead budget is $810,000 with 270,000 estimated machine hours. It is estimated that chair production will require 180,000 machine hours and table production will need 90,000 machine hours. Using the single plantwide factory overhead rate with an allocation base of machine hours, how much factory overhead will Horizon Manufacturing allocate to table production if actual machine hours for the period are 85,000? a) $300,000 b) $270,000 c) $255,000 d) $282,222

Horizon Manufacturing produces two products: chairs and tables. The total factory overhead budget is $810,000 with 270,000 estimated machine hours. It is estimated that chair production will require 180,000 machine hours and table production will need 90,000 machine hours. Using the single plantwide factory overhead rate with an allocation base of machine hours, how much factory overhead will Horizon Manufacturing allocate to table production if actual machine hours for the period are 85,000? a) $300,000 b) $270,000 c) $255,000 d) $282,222

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 6PB: Box Springs. Inc., makes two sizes of box springs: queen and king. The direct material for the queen...

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