Jayhawks Company had the following information: $\begin{array}{ll}
\text { Budgeted factory overhead } & \$ 80,000 \
\text { Actual factory overhead } & \$ 82,000 \
\text { Budgeted: Machine hours } & 40,000 \
\text { Actual: Machinehours } & 39,500
\end{array}$ The overhead applied for a company that uses 10,000 machine hours is:

Question

Quizplus · Accepted Answer

The overhead rate is calculated as Budgeted Overhead / Budgeted Machine Hours = $80,000 / 40,000 = $2 per machine hour. For 10,000 machine hours, the applied overhead is 10,000 * $2 = $20,000.

Jayhawks Company Had the Following Information The Overhead Applied for a Company That Uses 10,000 Machine