QUESTION 18 For 2019, Al Ain Manufacturing uses machine-hours as the only overhead cost-allocation base. The...

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QUESTION 18 For 2019, Al Ain Manufacturing uses machine-hours as the only overhead cost-allocation base. The accounting recor

business accounting

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Answer 1

Answer #1

Solution:

Overhead allocatio rate = estimated overhead / estimated machine hours = 100000/20000 = $5 per machine hour

Manufacturing overhead allocated to jobs = $5 * actual machine hours

= $5* 25000 = $125,000

Hence second option is correct.

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Answer 2

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