The following information was gathered for the Wesley Corporation for the most recent year. Manufacturing overhead is allocated using direct labor hours. What amount of manufacturing overhead would be allocated for the year?

Question

The following information was gathered for the Wesley Corporation for the most recent year. Manufacturing overhead is allocated using direct labor hours.  What amount of manufacturing overhead would be allocated for the year?

Quizplus · Accepted Answer

To calculate the manufacturing overhead allocated for the year, we need to multiply the predetermined overhead rate ($12 per direct labor hour) by the actual direct labor hours ($89,250). 
Manufacturing overhead = $12/DLH × Actual DLH 
Manufacturing overhead = $12 × 89,250 
Manufacturing overhead = $1,071,000

Therefore, the correct answer is B) $1,071,000.

The Following Information Was Gathered for the Wesley Corporation for the Most