20-2, 20-26 This Question: 1 pt 419 of 40 (15 complete) This Test: 40 pts possib

Question

20-2, 20-26 This Question: 1 pt 419 of 40 (15 complete) This Test: 40 pts possible The Carlin Fabrication Plant suffered a fire incident at the beginning of the year, which resulted in the loss of property including the accounting records. Some data for the year were retrieved, and extracts from it are shown below: Total manufacturing overhead costs estimated at the beginning of the year Total direct labor costs estimated at the beginning of the year Total direct labor hours estimated at the beginning of the year3,600 direct labor hours Total machine hours estimated at the beginning of the year Actual manufacturing overhead costs for the year Actual direct labor costs for the year Actual direct labor hours for the year Actual machine hours for the year $103,100 $184,000 9,500 machine hours $97,500 $145,000 2,400 direct labor hours 10,500 machine hours O A. $203,368 B. $113,925 O c. $26,046 O D. $300,708

Explanation / Answer

CALCULATION OF THE OVERHEAD RATE PER MACHINE HRS Total Manufacturing overhead estiamted = $                    1,03,100 "/"BY Divide By "/"BY Number of Machine Hrs = 9500 Overhead Rate per machiene Hrs "= " To Overhead Rate per machiene Hrs = $                          10.85 Per Machine Hrs CALCULATION OF TOTAL OVERHEAD Tatal Overhead = Number of Machine Hrs X Overhead rate per machien Hrs Tatal Overhead = 10,500 Hrs X $ 10.85 = $                    1,13,925 Answer = Option B = $ 113,925

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