Given the following information:Pairs of shoes expected to be produced 1,950,000Pairs of shoes produced 2,500,000Overhead rate $0.75What is the amount of applied overhead? $1,875,000 $412,500 $1,462,500 $550,000
Question
Given the following information:Pairs of shoes expected to be produced 1,950,000Pairs of shoes produced 2,500,000Overhead rate 1,875,000 1,462,500 $550,000
Solution
To calculate the amount of applied overhead, you need to multiply the overhead rate by the number of pairs of shoes produced.
Here are the steps:
- Identify the number of pairs of shoes produced: 2,500,000 pairs
- Identify the overhead rate: $0.75
- Multiply the number of pairs of shoes produced by the overhead rate: 2,500,000 pairs * 1,875,000
So, the amount of applied overhead is $1,875,000.
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