Sunland Manufacturing thinks that the best activity base for its manufacturing overhead is machine hours....
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Accounting
Sunland Manufacturing thinks that the best activity base for its manufacturing overhead is machine hours. The estimate of annual overhead costs is $720000. The company used 1000 hours of processing for Job A15 during the period and incurred actual overhead costs of $740000. The budgeted machine hours for the year totaled 20000. What amount of manufacturing overhead should be applied to Job A15?
A. $36000.
B. $740.
C. $720.
D. $37000.
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