Clinton Manufacturing Uses a Predetermined Overhead Allocation Rate Based on Direct

question 130

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: $$\begin{array} { | l | r | } \hline\begin{array} { l } \text { Total manufacturing overhead costs estimated at the beginning } \\\text { of the year }\end{array} & \$ 140,000 \\\hline \text { Total direct labor costs estimated at the beginning of the year } & \$ 330,000 \\\hline \text { Total direct labor hours estimated at the beginning of the year } & 10,000 \text { direct labor hours } \\\hline \text { Actual manufacturing overhead costs for the year } & \$ 150,000 \\\hline \text { Actual direct labor costs for the year } & \$ 370,000 \\\hline \text { Actual direct labor hours for the year } & 11,200 \text { direct labor hours } \\\hline\end{array}$$ 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) $140,000
• B) $168,182
• C) $156,954
• D) $150,000

---

Definitions:

Total Compensation

The complete reward package a worker receives, including salary, benefits, bonuses, and any other form of pay for services.

Strategic Objectives

Long-term, overarching goals that an organization aims to achieve to implement its vision and mission.

Pay Discussions

Conversations between employees and employers or within organizations that revolve around salary, compensation, and benefits.

Keeping Pay Secret

The practice of not disclosing employees' salaries to their colleagues in order to prevent dissatisfaction, competition, or tension within the workplace.