Question: Mandela Manufacturing thinks that the best activity base for its manufacturing overhead is machine hours. The estimate of annual overhead costs is $540,000. The company

Mandela Manufacturing thinks that the best activity base for its manufacturing overhead is machine hours. The estimate of annual overhead costs is $540,000. The company used 1,000 hours of processing for Job A15 during the period and incurred actual overhead costs of $580,000. The budgeted machine hours for the year totaled 20,000. What amount of manufacturing overhead should be applied to Job A15?

A.27,000.

B. $580.

C. $29,000.

D. $540.

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