Maximilian Cinemas has three departments.Of these,Department E occupies 55 machine hours of time per day while Department F occupies 25 machine hours per day.Department G occupies 20 machine hours.If overhead costs are allocated on the basis of machine hours,how much in overhead should be allocated to Department G if overheads are $10 500 per week?

Question

Quizplus · Accepted Answer

Overhead costs allocated to Department G = (Machine hours occupied by Department G / Total machine hours) * Overhead costs= (20 / (55 + 25 + 20)) * $10,500= (20 / 100) * $10,500= $2,100

Maximilian Cinemas Has Three Departments