Question

Echo Company uses a normalized job costing system and applies factory overhead on the basis of machine hours. Echo's yearly profit plan disclosed anticipated factory overhead of $4,800,000 if 200,000 machine hours are worked. By year-end, actual factory overhead charges and machine hours worked amounted to $4,730,000 and 215,000, respectively. What amount correctly states the factory overhead applied to Echo's actual year-end overhead

Answer 1

$22

Step-by-step explanation:

Given the above information, the amount that correctly states the factory overhead applied is ;

= Actual factory overhead charges / Machine hours worked

= $4,730,000 / 215,000

= $22