Question

Manufacturing overhead was estimated to be $204,000 for the year along with 20,400 direct labor hours. Actual manufacturing overhead was $219,400, and actual labor hours were 21,400. The amount credited to the Manufacturing Overhead account would be: Multiple Choice $204,000 $219,400 $214,000 $226,800

Answer 1

$214,000

Step-by-step explanation:

For calculating the Manufacturing Overhead account first we need to find out the predetermined overhead rate which is shown below:-

Predetermined overhead rate = Estimated manufacturing overhead ÷ Estimated direct labor hour

= $204,000 ÷ $20,400

= $10

Manufacturing overhead applied = Actual direct labor hour × Predetermined overhead rate

= 21,400 × $10

= $214,000