Clinton Manufacturing Uses a Predetermined Overhead Allocation Rate Based on Direct

question 56

Multiple Choice

Clinton Manufacturing uses a predetermined overhead allocation rate based on direct labor costs.The following are the details of production during the year: $\begin{array} { | l | l | } \hline \text { Total manufacturing overhead costs estimated at the beginning } & \\\text { of the year } & \$ 150,000 \\\hline \text { Total direct labor costs estimated at the beginning of the year } & \$ 350,000 \\\hline \text { Total direct labor hours estimated at the beginning of the year } & 11,000 \text { direct labor hours } \\\hline \text { Actual manufacturing overhead costs for the year } & \$ 160,000 \\\hline \text { Actual direct labor costs for the year } & \$ 360,000 \\\hline \text { Actual direct labor hours for the year } & 12,400 \text { direct labor hours } \\\hline\end{array}$ Calculate the amount of manufacturing overhead costs allocated to production.(Round any percentages to two decimal places and your final answer to the nearest dollar.)

• A) $150,000
• B) $164,571
• C) $154,296
• D) $160,000

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