Question: Stranahan Company allocates overhead based on machine hours. Estimated overhead costs for the year total $217,000 and the company estimates that it will use 31,000

Stranahan Company allocates overhead based on machine hours. Estimated overhead costs for the year total $217,000 and the company estimates that it will use 31,000 machine hours during the year. Actual overhead for the year was $220,000 and the company used 30,000 machine hours. If Job 45 requires 1,000 machine hours, how much overhead will be allocated to Job 45?

$7,097
$7,333
$7,233
$7,000

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