Happy Clicks,Inc What Is the Amount of Manufacturing Overhead Cost Allocated to Machine

question 32

Multiple Choice

Happy Clicks,Inc.uses a predetermined overhead allocation rate of $5.50 per machine hour.Actual overhead costs incurred during the year are as follows: $\begin{array} { | l | l | } \hline \text { Indirect materials } & \$ 6700 \\\hline \text { Indirect labor } & \$ 2200 \\\hline \text { Plant depreciation } & \$ 47 \\\hline \text { Plant utilities and insurance } & \$ 9800 \\\hline \text { Other plant overhead costs } & \$ 12,400 \\\hline \text { Total machine hours used during year } & 7600 \text { hours } \\\hline\end{array}$ What is the amount of manufacturing overhead cost allocated to Work-in-Process Inventory during the year?

• A) $38,747
• B) $8900
• C) $29,847
• D) $41,800

---

Definitions:

Expenses Accounts

Accounts that track money spent or costs incurred in a company’s operations to generate revenue.

Rent Expense

The cost incurred for utilizing a property or equipment for business purposes, recognized as an expense in the accounting period it is incurred.

Net Income

The company's net income following the deduction of all costs and taxes from the total income.

Income Summary

An account to which the revenues and expenses are transferred in order to close the books; it reflects the net income or loss at the end of a period.