Question

Gardner Machine Shop estimates manufacturing overhead costs for the coming year at $ 302 comma 000$302,000. The manufacturing overhead costs will be allocated based on direct labor hours. Gardner estimates 5 comma 0005,000 direct labor hours for the coming year. In​ January, Gardner completed Job​ A33, which used 5050 machine hours and 2323 direct labor hours. What was the amount of manufacturing overhead allocated to Job​ A33? (Round any intermediate calculations to the nearest​ cent, and your final answer to the nearest​ dollar.) A. $ 3 comma 020$3,020 B. $ 1 comma 389$1,389 C. $ 6 comma 040$6,040 D. $ 4 comma 409$4,409

Answer 1

Answer:

$140,309.20

Explanation:

The computation of the manufacturing overhead is shown below:

Predetermined overhead rate = (Total estimated manufacturing overhead) ÷ (estimated direct labor-hours)

= $302,000 ÷ 5,000 hours

= $60.4

Now we have to find the actual overhead which equals to

= Actual direct labor-hours × predetermined overhead rate

= 2,323 hours × $60.4

= $140,309.20

This is the answer but the same is not provided in the given options