Waterway Industries thinks machine hours is the best activity base for its manufacturing overhead. The estimate of annual overhead costs for its jobs was $2050000. The company used 1000 hours of processing on Job No. B12 during the period and incurred overhead costs totaling $2200000. The budgeted machine hours for the year totaled 20000. How much overhead should be applied to Job No. B12? $102500 $2050 $2200 $110000
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Waterway Industries thinks machine hours is the best activity base for its manufacturing
Overhead Application Rate = Estimated Overhead Cost/ Estimated Level of Activity
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
