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

question 93

Multiple Choice

Olympia Manufacturing uses a predetermined overhead allocation rate based on a percentage of direct labor cost.At the beginning of the year,Olympia estimated total manufacturing overhead costs at $1,020,000 and total direct labor costs at $830,000.In June,Job 511 was completed.The details of Job 511 are shown below.

What is the amount of manufacturing overhead costs allocated to Job 511? (Round any percentages to two decimal places and your final answer to the nearest dollar. )

• A)$15,976
• B)$30,723
• C)$10,578
• D)$20,343

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Definitions:

Fossilized Deposits

Organic or inorganic remains of organisms that have been preserved over geological time, usually in sedimentary rocks.

Hard Outer Shell

A protective external layer found in some animals, including crustaceans and certain insects, which offers defense against predators and environmental conditions.

Amoeboid Cells

Cells that move or feed by forming extensions of their cytoplasm, known as pseudopodia.

Rhizarians

A diverse supergroup of amoeboid cells that often have hard outer shells, called tests, through which cytoplasmic projections extend; include forams, actinopods, and certain shell-less amoebas.