The Quadrangle Fabrication Plant suffered a fire incident at the beginning of the year, which resulted in the loss of property including the accounting records. Some data for the year were retrieved, and extracts from it are shown below: Total manufacturing overhead costs estimated at the beginning of the year $102,940 Total direct labor costs estimated at the beginning of the year $184,000 Total direct labor hours estimated at the beginning of the year 3,300 direct labor hours Actual manufacturing overhead costs for the year $98,770 Actual direct labor costs for the year $150,000 Actual direct labor hours for the year 2,500 direct labor hours The company's manufacturing overhead allocation is based on direct labor hours. How much manufacturing overhead was allocated to production during the year? (Round any intermediate calculations to two decimal places, and your final answer to the nearest dollar.) Question content area bottom Part 1 A. $135,881 B. $184,000 C. $102,940 D. $77,975
The Quadrangle Fabrication Plant suffered a fire incident at the beginning of the year, which resulted in the loss of property including the accounting records. Some data for the year were retrieved, and extracts from it are shown below: Total manufacturing overhead costs estimated at the beginning of the year $102,940 Total direct labor costs estimated at the beginning of the year $184,000 Total direct labor hours estimated at the beginning of the year 3,300 direct labor hours Actual manufacturing overhead costs for the year $98,770 Actual direct labor costs for the year $150,000 Actual direct labor hours for the year 2,500 direct labor hours The company's manufacturing overhead allocation is based on direct labor hours. How much manufacturing overhead was allocated to production during the year? (Round any intermediate calculations to two decimal places, and your final answer to the nearest dollar.) Question content area bottom Part 1 A. $135,881 B. $184,000 C. $102,940 D. $77,975
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The Quadrangle Fabrication Plant suffered a fire incident at the beginning of the year, which resulted in the loss of property including the accounting records. Some data for the year were retrieved, and extracts from it are shown below:
|
Total
|
$102,940
|
|
Total direct labor costs estimated at the beginning of the year
|
$184,000
|
|
Total direct labor hours estimated at the beginning of the year
|
3,300 direct labor hours
|
|
Actual manufacturing overhead costs for the year
|
$98,770
|
|
Actual direct labor costs for the year
|
$150,000
|
|
Actual direct labor hours for the year
|
2,500 direct labor hours
|
The company's manufacturing overhead allocation is based on direct labor hours. How much manufacturing overhead was allocated to production during the year? (Round any intermediate calculations to two decimal places, and your final answer to the nearest dollar.)
Question content area bottom
Part 1
A.
$135,881
$184,000
$102,940
$77,975
Expert Solution
Step 1
A predetermined overhead rate forms the basis for the allocation of the actual manufacturing overhead incurred in the production process of goods and services. This rate is helpful in allocating the manufacturing overhead incurred to different products.
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