Zarvo Moldings Allocates Manufacturing Overhead to Jobs Based on Machine

question 9

Multiple Choice

Zarvo Moldings allocates manufacturing overhead to jobs based on machine hours.The company has the following estimated costs for the upcoming year: $$\begin{array} { | l | c c | } \hline \text { Direct materials used } & \mathbf { \$ } & \mathbf { 2 5 , 0 0 0 } \\\hline \text { Direct labor costs } & \mathbf { \$ } & \mathbf { 6 2 , 0 0 0 } \\\hline \text { Salary of factory supervisor } & \mathbf { \$ } & 41,000 \\\hline \text { Advertising expense } & \mathbf { \$ } & 33,000 \\\hline \text { Heating and lighting costs for factory } & \mathbf { \$ } & \mathbf { 2 1 , 0 0 0 } \\\hline \text { Depreciation on factory equipment } & \mathbf { \$ } & 9,000 \\\hline \text { Sales comris sions } & \mathbf { \$ } & \mathbf { 8 , 0 0 0 } \\\hline\end{array}$$ The company estimates that 1,800 direct labor hours will be worked in the upcoming year,while 2,000 machine hours will be used during the year.
-The predetermined manufacturing overhead rate per direct labor hour is closest to:

• A)$62.
• B)$39.
• C)$35.
• D)$111.

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