Archangel Manufacturing Has Just Finished the Year 2012

question 98

Multiple Choice

Archangel Manufacturing has just finished the year 2012. They created a predetermined manufacturing overhead allocation rate at the beginning of the year based on a percentage of direct labor costs. Below are various data: Based on the data above, how much manufacturing overhead was allocated to production? (Please round to nearest whole dollar.)

• A)$825,360
• B)$905,000
• C)$144,800
• D)$159,280

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Definitions:

Calculated Manually

A process or calculation done by hand or without the use of automated tools or software.

QuickBooks

An accounting software package developed and marketed by Intuit, aimed primarily at small and medium-sized businesses.

Purchasing Cycle

The sequence of steps or processes involved in the acquisition of goods or services, from the identification of a need, through the procurement process, to the payment of the invoice.

Purchase Order

A formal document issued by a buyer to a seller, detailing the products or services ordered and the agreed-upon prices.