Olympia Manufacturing Uses a Predetermined Overhead Allocation Rate Based on Direct

question 151

Multiple Choice

Olympia Manufacturing uses a predetermined overhead allocation rate based on direct labor cost.At the beginning of the year,Olympia estimated total manufacturing overhead costs at $1,010,000 and total direct labor costs at $820,000.In June,Job 511 was completed.The details of Job 511 are shown below. $\begin{array} { |l | l|} \hline \text { Direct materials cost } & \$ 24,000 \\\hline \text { Direct labor cost } & \$ 13,000 \\\hline \text { Direct labor hours } & 500 \text { hours } \\\hline \text { Units of product produced } & 500 \text { hours } \\\hline\end{array}$ What is the amount of manufacturing overhead costs allocated to Job 511? (Round any percentages to two decimal places and your final answer to the nearest dollar.)

• A) $16,012
• B) $29,561
• C) $10,554
• D) $19,485

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