Question

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: Actual manufacturing overhead cost $184,000 Actual direct labor hours 14,500 The amount of manufacturing overhead allocated for the year based on direct labor hours would have been: a. $179,750. b. $195,750. c. $175,500. d. $184,000.

Answer 1

B, 195750

Step-by-step explanation:

Let's first figure out the manufacturing overhead per direct labor hour

175500/13000= 13.5

So we allocate 13.5 in manufacturing overhead per direct labor hour

Let's the mulitply this by the number of actual direct labor hours

14500*13.5=195750