Question

10) Before the year began, Murphy 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 manufactring overhead cost : 184,000 actual direct labor hours : 14500 the amount of manufacturing overhead allocated for the year based on direct labor hours would have been ?

Answer 1

Step-by-step explanation:

What is given:

Budgeted overhead = 175,500

Budgeted labour hours = 13,000

So Budgeted overhead per hour = 175500/13000 = 13.5

Actual labor hours = 14,500

Amount of manufacturing overhead allocated for the year based on direct labour hours = 14,500*13.5 = 195,750