Clinton Manufacturing Uses a Predetermined Overhead Allocation Rate Based on a Percentage

question 97

Multiple Choice

Clinton Manufacturing uses a predetermined overhead allocation rate based on a percentage of direct labor costs.The following are the details of production during the year: $$\begin{array} { | l | r | } \hline \begin{array} { l } \text { Total manufacturing overhead costs estimated at the beginning } \\\text { of the year }\end{array} & \$ 140,000 \\\hline \text { Total direct labor costs estimated at the beginning of the year } & \$ 330,000 \\\hline \text { Total direct labor hours estimated at the beginning of the year } & 12,000 \text { direct labor hours } \\\hline \text { Actual manufacturing overhead costs for the year } & \$ 160,000 \\\hline \text { Actual direct labor costs for the year } & \$ 370,000 \\\hline \text { Actual direct labor hours for the year } & 11,800 \text { direct labor hours } \\\hline\end{array}$$
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) $179,394
• C) $156,954
• D) $160,000

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Definitions:

Phyletic Gradualism

The idea that evolution occurs by a slow, steady accumulation of genetic changes over time; also called gradualism. Compare with punctuated equilibrium.

Stabilizing Selection

A type of natural selection that favors the average individuals in a population, reducing variation.

Fossil Record

The accumulation of evidences, such as bones, shells, or imprints, left by organisms in sedimentary rocks, providing a historical sequence of life on Earth.

Speciation

The evolutionary process by which populations evolve to become distinct species, typically through genetic isolation from other populations.