Manufacturing overhead was estimated to be $400,000 for the year along with 20,000 direct labor hours.Actual manufacturing overhead was $415,000,and actual labor hours were 21,000.The amount credited to the Manufacturing Overhead account would be:

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Quizplus · Accepted Answer

The amount credited to the Manufacturing Overhead account is based on the predetermined overhead rate, which is calculated as estimated overhead costs divided by estimated direct labor hours. The predetermined rate is $400,000 / 20,000 hours = $20 per hour. The amount credited is then $20 per hour * 21,000 actual hours = $420,000.

Manufacturing Overhead Was Estimated to Be $400,000 for the Year