allocates manufacturing overhead based on machine hours estimated 10,000 machine hours and $88,000 of manufacturing overhead costs actually used 15,000 machine hours and incurred the following actual costs: E (Click the icon to view the costs.) What is Well's actual manufacturing overhead cost? O A. $148,000 O B. $159,000 OC. $224,000 O D. $83,000

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Well Corporation manufactures computers. Assume that Well:
allocates manufacturing overhead based on machine hours
Data Table
estimated 10,000 machine hours and $88,000 of manufacturing overhead costs
actually used 15,000 machine hours and incurred the following actual costs:
E (Click the icon to view the costs.)
Indirect labor
$
12,000
What is Well's actual manufacturing overhead cost?
Depreciation on plant
43,000
Machinery repair
13,000
O A. $148,000
Direct labor
76,000
O B. $159,000
Plant supplies
4,000
OC. $224,000
Plant utilities
11,000
D. $83,000
Advertising
37,000
Sales commissions
28,000
Print
Done
Transcribed Image Text:Well Corporation manufactures computers. Assume that Well: allocates manufacturing overhead based on machine hours Data Table estimated 10,000 machine hours and $88,000 of manufacturing overhead costs actually used 15,000 machine hours and incurred the following actual costs: E (Click the icon to view the costs.) Indirect labor $ 12,000 What is Well's actual manufacturing overhead cost? Depreciation on plant 43,000 Machinery repair 13,000 O A. $148,000 Direct labor 76,000 O B. $159,000 Plant supplies 4,000 OC. $224,000 Plant utilities 11,000 D. $83,000 Advertising 37,000 Sales commissions 28,000 Print Done
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