Falstaff Products estimated manufacturing overhead costs for the year at $500,000. Falstaff also estimated 8,000 machine hours for the year. Falstaff bases their predetermined manufacturing overhead rate on machine hours. On January 31, job 300 was completed. It required 12 machine hours to produce. How much manufacturing overhead was allocated to the job?

Question

Quizplus · Accepted Answer

C) Calculations:
$500,000/8,000 = $62.50
$62.50 × 12 = $750

Falstaff Products Estimated Manufacturing Overhead Costs for the Year at $500,000