This Question: 3 pts 10 of 28 (6 complete) This Test: 100 pts possible Stealth,

Question

This Question: 3 pts 10 of 28 (6 complete) This Test: 100 pts possible Stealth, Inc produces two types of drones, rotary and fixed wing Stealth estimated $825,000 of manufacturing overhead, and 55,000 machine hours for the year. The allocation base for overhead costs is machine hours. The rotary model actually consumed 30,000 machine hours, and the fixed wing type consumed 25,000 machine hours, How much overhead is allocated to the rotary model? Os sw OA. $450,000 OB. $375,000 O C. $300,000 O D. $125,000 Ent

Explanation / Answer

Predetermined overhead cost=($825000/55000)=$15/machine hour

Overhead allocated to rotary model is equal to

=($15*30000)

=$450,000(A)

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