Question

Manufacturing overhead was estimated to be $249,600 for the year along with 20,800 direct labor hours. Actual manufacturing overhead was $219,000, and actual labor hours were 21,900. The amount debited to the Manufacturing Overhead account would be: Multiple Choice $219,000. $249,600. $233,000. $262,800.

Answer 1

Debit to manufacturing overhead= $262,800

Step-by-step explanation:

First, we need to calculate the predetermined overhead rate:

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Predetermined manufacturing overhead rate= 249,600/20,800

Predetermined manufacturing overhead rate= $12 per direct labor hour

Now, we can allocate overhead:

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Allocated MOH= 12*21,900

Allocated MOH= $262,800

Debit to manufacturing overhead= $262,800