Question

Showboat Corporation hed actual manufacturing overhead costs for the most recent yoar of $30,400 Manufacdtuning overhead is allocated using a predetermined manufacturing overhead rate of $3.25 per direct labor hour. Direct labor cost is $26 per hour. At the end of the year, Cabaret Corporation found it had overallocated manufacturing overhead by $1,850.

How much manufacturing overhead was allocated in total during the year?

A $30,400

B.$32,250

C. $28,550

D. $1,850

Answer 1

B. $32,250

Step-by-step explanation:

The calculation of manufacturing overhead is shown below:-

Actual manufacturing overhead costs = $30,400

Over allocated manufacturing overhead = $1,850

Manufacturing Overhead allocated during the year = Actual manufacturing overhead + Over allocated overhead

= $30,400 + $1,850

= $32,250

Therefore for computing the Manufacturing Overhead allocated during the year we simply add Actual manufacturing overhead with over allocated overhead.