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Martin Manufacturing assigns overhead to jobs based on machine hours. At the beginning of the current year, estimated overhead costs were $250,000 and estimated machine
Martin Manufacturing assigns overhead to jobs based on machine hours. At the beginning of the current year, estimated overhead costs were $250,000 and estimated machine hours were 50,000. During the year, 150 machine hours were used on Job #108. By the end of the year, actual overhead costs were calculated to be $232,500 and actual machine hours were 5,000.
How much overhead was applied to Job #108 during the year?
a. $630
b. $708.75
c. $622.22
d. $750.00
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