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

question 26

Multiple Choice

Happy Clicks,Inc.uses a predetermined overhead allocation rate of $5.50 per machine hour.Actual overhead costs incurred during the year are as follows: $$\begin{array} { | l | r | } \hline \text { Indirect materials } & \$ 6,700 \\\hline \text { Indirect labor } & \$ 2,200 \\\hline \text { Plant depreciation } & \$ 47 \\\hline \text { Plant utilities and insurance } & \$ 9,800 \\\hline \text { Other plant overhead costs } & \$ 12,400 \\\hline \text { Total machine hours used during year } & 7,600 \text { hours } \\\hline\end{array}$$ What is the amount of manufacturing overhead cost allocated to Work-in-Process Inventory during the year?

• A)$38,747
• B)$8,900
• C)$29,847
• D)$41,800

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Definitions:

Productive Asset

An asset used in the operations of a business that contributes to its ability to generate revenue, such as machinery, buildings, and equipment.

Accumulated Depreciation

The total amount of depreciation expense that has been recorded against a fixed asset since it was put into use.

Selling Price

The amount of money for which a product or service is offered for sale to customers.

Accrued Sales Revenues

Revenues earned during a period but not yet received in cash or recorded at the statement date.