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

question 3

Multiple Choice

Happy Clicks,Inc.uses a predetermined overhead allocation rate of $5.25 per machine hour.Actual overhead costs incurred during the year are as follows: $$\begin{array} { | l | r | } \hline \text { Indirect materials } & \$ 5,600 \\\hline \text { Indirect labor } & \$ 2,000 \\\hline \text { Plant depreciation } & \$ 4,300 \\\hline \text { Plant utilities and insurance } & \$ 9,900 \\\hline \text { Other plant overhead costs } & \$ 12,100 \\\hline \text { Total machine hours used during year } & 7,100 \text { hours } \\\hline\end{array}$$
What is the amount of manufacturing overhead cost allocated to Work-in-Process Inventory during the year?

• A) $41,000
• B) $7,600
• C) $33,400
• D) $37,275

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Definitions:

Panel (A)

This term is ambiguous without context but usually refers to a specific subset or group within a broader survey or study, denoted as "A" for distinction.

Long-Run Equilibrium

A state in a market where, given sufficient time, all factors of production and costs are variable, allowing firms to enter or exit the market, and no economic profit is earned.

Monopolistic Competition

A market structure where many firms sell products that are similar but not identical, allowing for competition based on product differentiation.

Market Demand

The total demand for a product or service in a market, aggregating all individual demands at various prices.