A project requires a $28,000 investment and is expected to generate end-of-period annual cash inflows as follows: Year 1 Year 2
1 answer:
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Answer:
correct option is a. $1,700 over head applied
Explanation:
given data
overhead = $700,000
machine hours = 200,000
direct labor hours = 35,000
Feb, direct labor hours = 5,000
Feb, machine hours = 10,000
Feb, actual overhead = $98,300
solution
we know overhead rate that is
overhead rate =
overhead rate =
overhead rate = $20 per hours
and in Feb for 5000 direct labor hour
overhead = 5000 × $20 = $100,000
so
over head applied = $100,000 - $98300
over head applied = $1700
so correct option is a. $1,700 over head applied