Manufacturing Overhead Is Allocated to Products Based on the Number

question 31

Multiple Choice

Manufacturing overhead is allocated to products based on the number of machine hours required.In a year when 40,000 machine hours and 60,000 direct labor hours were anticipated, indirect costs were budgeted at $252,000.If production of wagons requires 9,000 machine hours and 10,800 direct labor hours, how much manufacturing overhead will be allocated to wagons?

• A)$45,360
• B)$56,700
• C)$2,268
• D)$28

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