d predetermined manufacturing overhead rate. QUESTION7 Before the year began, Mi
ID: 2340529 • Letter: D
Question
d predetermined manufacturing overhead rate. QUESTION7 Before the year began, Mitchell Manufacturing estimated that manufacturing overhead for the year would be $175,500 and that 13,000 direct labor hours would be worked. Actual results for the year included the following $184,000 Actual manufacturing overhead cost 14,500 Actual direct labor hours The amount of manufacturing overhead allocated for the year based on direct labor hours would have been O a.$179,750 O b.$195,750 O 5175,500 O d.5184,000 QUESTION 8Explanation / Answer
Correct Answer --- (b) $195,750
Calculations
Calculation of Predetermined Overhead rate
(A)
Total Estimated Manufacturing Overheads
$ 175,500.00
(B)
Estimated Direct Labor hours
13000
(A/B)
Predetermined overhead per labor hour
$ 13.50
Overheads that would have been allocated based on Direct labor hours
(A)
Actual Direct labor Hours
14500
(B)
Predetermined overhead per labor hour
$ 13.50
(AxB)
Allocated Overheads
$ 195,750.00
Calculation of Predetermined Overhead rate
(A)
Total Estimated Manufacturing Overheads
$ 175,500.00
(B)
Estimated Direct Labor hours
13000
(A/B)
Predetermined overhead per labor hour
$ 13.50
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