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

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Definitions:

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Supply Chain

The system of organizations, people, activities, information, and resources involved in moving a product or service from supplier to customer.

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