Happy Clicks, Inc What Is the Amount of Manufacturing Overhead Cost Allocated to $5.00

question 78

Multiple Choice

Happy Clicks, Inc. uses a predetermined overhead allocation rate of $5.00 per machine hour. Actual overhead costs incurred during the year are as follows: $$\begin{array} { | l | r | } \hline \text { Indirect materials } & \$ 6600 \\\hline \text { Indirect labor } & \$ 3200 \\\hline \text { Plant depreciation } & \$ 43 \\\hline \text { Plant utilities and insurance } & \$ 9900 \\\hline \text { Other plant overhead costs } & \$ 11,700 \\\hline \text { Total machine hours used during year } & 7000 \text { hours } \\\hline\end{array}$$ What is the amount of manufacturing overhead cost allocated to Work-in-Process Inventory during the year?

• A) $38,443
• B) $9800
• C) $28,643
• D) $35,000

---

Definitions:

Marble Cake Federalism

A model of federalism where government functions and responsibilities are intermixed among the national, state, and local governments, in contrast to clearly divided layers or levels.

Intergovernmental Cooperation

The process and practice of different levels of government (local, regional, national) working together to solve problems and implement policies.

Unfunded Mandate Reform Act

A 1995 United States federal law aimed at limiting the number and cost of federal mandates imposed on state and local governments and private sector businesses.

Medicaid Coverage

A health insurance program in the United States for low-income individuals and families that provides medical and health-related services.