The Carlin Fabrication Plant suffered a fire incident at the beginning of the year,which resulted in the loss of property including the accounting records.Some data for the year were retrieved,and extracts from it are shown below: $$\begin{array} { | l | l | }
\hline\begin{array} { l }
\text { Total manufacturing overhead costs estimated at the beginning } \
\text { of the year }
\end{array} & \$ 100,700 \
\hline \text { Total direct labor costs estimated at the beginning of the year } & \$ 185,000 \
\hline \text { Total direct labor hours estimated at the beginning of the year } & 3000 \text { direct labor hours } \
\hline \text { Total machine hours estimated at the beginning of the year } & 9600 \text { machine hours } \
\hline \text { Actual manufacturing overhead costs for the year } & \$ 96,900 \
\hline \text { Actual direct labor costs for the year } & \$ 147,000 \
\hline \text { Actual direct labor hours for the year } & 2900 \text { direct labor hours } \
\hline \text { Actual machine hours for the year } & 10,000 \text { machine hours } \
\hline
\end{array}$$ The company's manufacturing overhead allocation is based on the number of machine hours.What is the amount of manufacturing overhead cost allocated to Work-in-Process Inventory during the year? (Round any intermediate calculations to two decimal places,and your final answer to the nearest dollar.)

Question

The Carlin Fabrication Plant suffered a fire incident at the beginning of the year,which resulted in the loss of property including the accounting records.Some data for the year were retrieved,and extracts from it are shown below: $$\begin{array} { | l | l | } 
\hline\begin{array} { l }  
\text { Total manufacturing overhead costs estimated at the beginning } \
\text { of the year }
\end{array} & \$ 100,700 \
\hline \text { Total direct labor costs estimated at the beginning of the year } & \$ 185,000 \
\hline \text { Total direct labor hours estimated at the beginning of the year } & 3000 \text { direct labor hours } \
\hline \text { Total machine hours estimated at the beginning of the year } & 9600 \text { machine hours } \
\hline \text { Actual manufacturing overhead costs for the year } & \$ 96,900 \
\hline \text { Actual direct labor costs for the year } & \$ 147,000 \
\hline \text { Actual direct labor hours for the year } & 2900 \text { direct labor hours } \
\hline \text { Actual machine hours for the year } & 10,000 \text { machine hours } \
\hline
\end{array}$$ The company's manufacturing overhead allocation is based on the number of machine hours.What is the amount of manufacturing overhead cost allocated to Work-in-Process Inventory during the year? (Round any intermediate calculations to two decimal places,and your final answer to the nearest dollar.)

Quizplus · Accepted Answer

To find the manufacturing overhead cost allocated to Work-in-Process Inventory during the year, we first need to calculate the predetermined overhead rate as follows:

Predetermined overhead rate = Estimated total manufacturing overhead cost / Estimated total machine hours
= ($419,200 + $187,200) / 60,000
= $10.44 per machine hour

Then, we need to use the actual machine hours for each department to allocate the manufacturing overhead cost. From the given data, the actual machine hours for Department A and Department B are:
- Department A: 14,000 machine hours
- Department B: 47,000 machine hours

So, the manufacturing overhead cost allocated to Work-in-Process Inventory is:
= Predetermined overhead rate * Actual machine hours for Department A
+ Predetermined overhead rate * Actual machine hours for Department B
= $10.44 * 14,000 + $10.44 * 47,000
= $104,900

Therefore, the correct answer is choice C.

The Carlin Fabrication Plant Suffered a Fire Incident at the Beginning