Chapter 17, Problem 6QC

Gell Corporation manufactures computers. Assume that Gell:

* allocates manufacturing overhead based on machine hours

* estimated 12,000 machine hours and $93,000 of manufacturing overhead costs

* actually used 16,000 machine hours and incurred the following actual costs:

What is Gell’s actual manufacturing overhead coast?

1. a. $158,000
2. b. $83,000
3. c. $145,000
4. d. $220,000