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17) The following information is provided by the Sutton Corporation for the year: Actual Overhead $ 450,000 Actual machine ho
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Answer :- Calculation of budgeted overhead =

Applied Overhead = Predetermined rate * Actual Activity

$487,500 = Predetermined rate * 25,000

Predetermined rate = $19.50 per hour

Predetermined rate = Budgeted overhead/Budgeted activity

$19.50 = Budgeted overhead/ 27,500

Budgeted Overhead = $536,250

So the correct answer is option D ( $536,250).

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