Molly Manufacturing is using a manufacturing overhead application rate of 125% of machine cost.A job uses 35 machine hours at $9/hour.How much overhead should be applied to the job?

Question

Quizplus · Accepted Answer

First, we need to calculate the machine cost for the job:
35 machine hours x $9/hour = $315

Then, we apply the manufacturing overhead application rate of 125%:

125% x $315 = $393.75

Therefore, the overhead that should be applied to the job is $393.75. The answer is Choice B.

Molly Manufacturing Is Using a Manufacturing Overhead Application Rate of 125