**Question Text:**Assume (1) estimated fixed manufacturing overhead for the coming period of $211,000, (2) estimated variable manufacturing overhead of $2.00 per direct labor hour, (3) actual manufacturing overhead for the period of $320,000, (4) actual direct labor-hours worked of 54,000 hours, and (5) estimated direct labor-hours to be worked in the coming period of 55,000 hours. The amount of overhead applied to production during the period is closest to which of the following? Round intermediate calculations to two decimal places.**Multiple Choice Options:**- $325,926.- $327,044.- $321,000.- $315,360.---**Explanation:**To calculate the overhead applied to production:1. **Fixed Overhead:** $211,0002. **Variable Overhead:** $2.00 per direct labor hour Multiply the variable overhead rate by the estimated direct labor-hours: \[ 2.00 \times 55,000 = 110,000 \]3. **Total Estimated Overhead:** Add the fixed and variable overhead costs: \[ 211,000 + 110,000 = 321,000 \]The amount of overhead applied to production during the period is $321,000, which matches one of the given options. Thus, the closest answer is $321,000.

The overhead is applied to the production on the basis of predetermined overhead rate.

Answered: ssume (1) estimated fixed manufacturing…

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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