What was the amount of manufacturing overhead applied to Job A-101?

Question

Quizplus · Accepted Answer

The amount of manufacturing overhead applied to Job A-101 is determined by multiplying the predetermined overhead rate by the actual number of machine hours used. In this case, the predetermined overhead rate is $3 per machine hour ($120,000 estimated overhead / 40,000 estimated machine hours), and the actual machine hours used on Job A-101 are 6,000. Therefore, the manufacturing overhead applied to Job A-101 is $18,000 (6,000 machine hours x $3 per machine hour).

What Was the Amount of Manufacturing Overhead Applied to Job