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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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