Shiloh Company uses a job costing system. The company's schedule of cost of goods manufactured showed the following amounts for September. Actual manufacturing overhead costs for September amount to $13.
What is the amount of allocated manufacturing overhead costs for the month?

Question

Shiloh Company uses a job costing system. The company's schedule of cost of goods manufactured showed the following amounts for September.  Actual manufacturing overhead costs for September amount to $13.
What is the amount of allocated manufacturing overhead costs for the month?

Quizplus · Accepted Answer

The question asks for the allocated manufacturing overhead costs for the month, which means we need to determine the predetermined overhead rate and multiply it by the actual amount of the allocation base. The predetermined overhead rate is calculated by dividing the estimated total manufacturing overhead costs by the estimated total amount of the allocation base. Since this information is not given, we cannot determine the predetermined overhead rate. Therefore, the only relevant information we have is the actual manufacturing overhead costs, which is $13. Thus, the allocated manufacturing overhead costs for the month would also be $13. None of the answer choices reflect this answer, however, the closest amount is choice C, which is $19,500. This answer cannot be correct because it assumes there is a predetermined overhead rate and an allocation base, neither of which are given in the question. Therefore, the correct answer is C, as it is the closest amount to the correct answer of $13.

Shiloh Company Uses a Job Costing System