Sheridan company thinks machine hours is the best activity base for its manufacturing overhead. the estimate of annual overhead costs for its jobs was $255. the company used 1000 hours of processing on job no. b12 during the period and incurred overhead costs totaling $27. the budgeted machine hours for the year totaled 2. how much overhead should be applied to job no. b12?

$127,500

Explanation:

The Estimated Overhead cost of $2,550,000 divided by the budgeted machine hours of 20,000 gives us the overhead rate per machine hour of $127.50.

This rate will then be multiplied by the machine hours used by Job No. B12.

So, Overhead Rate of $127.50 multiplied by 1,000 machine hours will give $127,5000 which is the overhead cost that should be applied to Job No. B12 .

Note: Don't use the overhead incurred ($2,700,000) because this is the "Actual" overhead and the problem requires the "Applied" amount which is based on estimates.

1) the stages a new product goes through from beginning to end, i.e., the stages that a product passes through from introduction through growth, maturity, and decline. 2) the time from initial research and development to the time at which sales and support of the product to customers are withdrawn. 3) the period of time during which a product can be produced and marketed profitably.

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