Refer to the above data. If Riverview applies overhead using a predetermined rate based on machine-hours, what amount of overhead will be assigned to a unit of output which requires 0.5 machine hours and 0.25 labor hours to complete?
A) $12.00.
B) $16.00.
C) $20.00.
D) Some other amount.

Question

Quizplus · Accepted Answer

Overhead rate = $24 / 0.5 machine-hours = $48 per machine-hourOverhead assigned = $48 per machine-hour * 0.5 machine-hours = $24

Refer to the Above Data