Manufacturing overhead was estimated to be $200,000 for the year along with 20,000 direct labor hours.Actual manufacturing overhead was $215,000,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 using estimated figures. The predetermined overhead rate is $200,000 / 20,000 hours = $10 per hour. For actual labor hours of 21,000, the credited amount is 21,000 hours * $10/hour = $210,000.

Manufacturing Overhead Was Estimated to Be $200,000 for the Year