Brendal Corporation is a manufacturer that uses job-order costing.The company has supplied the following data for the just completed year:
Results of operations:
How much is the total manufacturing cost added to Work in Process during the year?
A) $1,215,000
B) $1,803,000
C) $1,498,500
D) $2,023,500

Question

Brendal Corporation is a manufacturer that uses job-order costing.The company has supplied the following data for the just completed year:
 Results of operations:
 How much is the total manufacturing cost added to Work in Process during the year?
A) $1,215,000 
B) $1,803,000 
C) $1,498,500 
D) $2,023,500

Quizplus · Accepted Answer

Predetermined overhead rate = Estimated total manufacturing overhead cost ÷ Estimated total amount of the allocation base
= $693,000 ÷ 42,000 direct labor-hours = $16.50 per direct labor-hour
Overhead applied = Predetermined overhead rate × Amount of the allocation base incurred
= $16.50 per direct labor-hour × 49,000 direct labor-hours = $808,500
 11ea7761_18d6_6cdc_81a5_7b317c553c96_TB2580_00

Brendal Corporation Is a Manufacturer That Uses Job-Order Costing