### Manufacturing Overhead CalculationManufacturing overhead was estimated to be $591,600 for the year along with 20,400 direct labor hours. Actual manufacturing overhead was $551,820, and actual labor hours were 21,800. The amount of manufacturing overhead applied to production would be:#### Multiple Choice Options:- ○ $591,600- ○ $474,150- ○ $632,200- ○ $551,820#### Explanation:To calculate the applied manufacturing overhead, determine the predetermined overhead rate based on estimates, and then apply it to the actual labor hours:1. **Estimated Rate**: - Estimated Overhead: $591,600 - Estimated Labor Hours: 20,400 \[ \text{Predetermined Overhead Rate} = \frac{\text{Estimated Overhead}}{\text{Estimated Labor Hours}} = \frac{591,600}{20,400} \]2. **Apply Rate**: - Actual Labor Hours: 21,800 \[ \text{Applied Overhead} = \text{Predetermined Overhead Rate} \times \text{Actual Labor Hours} \]This approach ensures the applied overhead reflects the actual production activity.

Predetermined manufacturing overhead rate = estimated manufacturing overhead / estimated direct labor hours = $591600/20400 hours = $29 per hourManufacturing overhead applied to production = Predetermined manufacturing overhead rate x actual direct labor hours = $29 per hour x 21,800 hours = $632,200

Business

Accounting

Slog- Saved Enabled: Exam 1(Ch 14) O Manufacturing overhead was estimated to be $591,600 for the year along with 20,400 direct labor hours. Actual manufacturing overhead was $5,820, and actual labor hours were 21,800. The amount of manufacturing overhead applied to production would be: Multiple Choice $591,600. $474,150. $632,200. $51,820.

Slog- Saved Enabled: Exam 1(Ch 14) O Manufacturing overhead was estimated to be $591,600 for the year along with 20,400 direct labor hours. Actual manufacturing overhead was $5,820, and actual labor hours were 21,800. The amount of manufacturing overhead applied to production would be: Multiple Choice $591,600. $474,150. $632,200. $51,820.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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