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irina [24]
3 years ago
11

LO 6.3A company calculated the predetermined overhead based on an estimated overhead of $70,000, and the activity for the cost d

river was estimated as 2,500 hours. If product A utilized 1,350 hours and product B utilized 1,100 hours, what was the total amount of overhead assigned to the products?
$35,000
$30,800
$37,800
$68,600
Business
1 answer:
olya-2409 [2.1K]3 years ago
8 0

Answer:

$68,600

Explanation:

An predetermined overhead of $70,000 was estimated for an activity of 2,500 hours. The actual overhead assigned to the products is given by multiplying the fraction of the total 2,500 hours of activity utilized by the products by the predetermined overhead:

A = \frac{1,350+1,100}{2,500}*\$70,000\\ A = \$68,600

The total amount of overhead assigned to the products is $68,600.

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