Ibra manufacturing uses machine hours as an activity base for its manufacturing overhead. The estimate of annual overhead costs for its jobs was OMR 2,050,000. The company used 1,000 hours of processing on Job No. B12 during the period and incurred overhead costs totaling OMR 2,100,000. The estimated machine hours for the year totaled 20,000. How much overhead should be applied to Job No. B12?

FINANCIAL ACCOUNTING
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Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Ibra manufacturing uses machine hours as an activity base for its manufacturing overhead. The estimate of annual overhead
costs for its jobs was OMR 2,050,000. The company used 1,000 hours of processing on Job No. B12 during the period and
incurred overhead costs totaling OMR 2,100,000. The estimated machine hours for the year totaled 20,000. How much overhead
should be applied to Job No. B12?
Select one:
O a. OMR 102,500
Ob. OMR 105,000
Oc. None of the answers are correct
O d. OMR 2, 100
O e. OMR 2,050
Transcribed Image Text:Ibra manufacturing uses machine hours as an activity base for its manufacturing overhead. The estimate of annual overhead costs for its jobs was OMR 2,050,000. The company used 1,000 hours of processing on Job No. B12 during the period and incurred overhead costs totaling OMR 2,100,000. The estimated machine hours for the year totaled 20,000. How much overhead should be applied to Job No. B12? Select one: O a. OMR 102,500 Ob. OMR 105,000 Oc. None of the answers are correct O d. OMR 2, 100 O e. OMR 2,050
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