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Alex777 [14]
3 years ago
7

Before the year began, Murphy Manufacturing estimated that manufacturing overhead for the year would be $176,000 and that 13, 70

0 direct labor hours would be worked. Actual results for the year included the following: Actual manufacturing overhead cost $184, 100 Actual direct labor hours 15, 100 The amount of manufacturing overhead allocated for the year based on direct labor hours would have been _____. (Round intermediary calculations to the nearest cent.) A. $194, 035. B. $184, 100. C. $176,000. D. $167, 031.
Business
1 answer:
saveliy_v [14]3 years ago
7 0

Answer:

A. $194, 035

Explanation:

Predetermined Manufacturing overhead Rate = Estimated total overheads / Estimated direct labor hours

Predetermined Manufacturing overhead Rate = $176,000 / 13,700

Predetermined Manufacturing overhead Rate = $12.85 /  direct labor hour

Actual Labor hours = 15,100 hours

Manufacturing overhead allocated = $12.85x 15,100

Manufacturing overhead allocated = $194,035

The correct option is A. $194, 035

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