Sybil Inc Uses a Predetermined Overhead Allocation Rate to Allocate Manufacturing

question 144

Multiple Choice

Sybil Inc. uses a predetermined overhead allocation rate to allocate manufacturing overhead costs to jobs. The company recently completed Job 300X. This job used 12 machine hours and 3 direct labor hours. The predetermined overhead allocation rate is calculated to be $45 per machine hour. What is the amount of manufacturing overhead allocated to Job 300X using machine hours as the allocation base?

• A)$540
• B)$135
• C)$675
• D)$405

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Definitions:

Process

A series of actions or steps taken in order to achieve a particular end.

Produce

To create, manufacture, or bring forth goods, services, or results through a process of combining or arranging resources or efforts.

Participate

To take part or become involved in an activity or event.

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Refers to individuals who experience anxiety or nervousness when giving presentations or speaking in public.