Happy Clicks,Inc.uses a predetermined overhead allocation rate of $5.00 per machine hour.Actual overhead costs incurred during the year are as follows: $$\begin{array} { | l | r | }
\hline \text { Indirect materials } & \$ 6600 \
\hline \text { Indirect labor } & \$ 3200 \
\hline \text { Plant depreciation } & \$ 43 \
\hline \text { Plant utilities and insurance } & \$ 9900 \
\hline \text { Other plant overhead costs } & \$ 11,700 \
\hline \text { Total machine hours used during year } & 7000 \text { hours } \
\hline
\end{array}$$ What is the amount of manufacturing overhead cost allocated to Work-in-Process Inventory during the year?

Question

Happy Clicks,Inc.uses a predetermined overhead allocation rate of $5.00 per machine hour.Actual overhead costs incurred during the year are as follows: $$\begin{array} { | l | r | } 
\hline \text { Indirect materials } & \$ 6600 \
\hline \text { Indirect labor } & \$ 3200 \
\hline \text { Plant depreciation } & \$ 43 \
\hline \text { Plant utilities and insurance } & \$ 9900 \
\hline \text { Other plant overhead costs } & \$ 11,700 \
\hline \text { Total machine hours used during year } & 7000 \text { hours } \
\hline
\end{array}$$ What is the amount of manufacturing overhead cost allocated to Work-in-Process Inventory during the year?

Quizplus · Accepted Answer

The manufacturing overhead cost allocated is calculated by multiplying the predetermined overhead rate ($5.00) by the total machine hours used (7000 hours), which equals $35,000.

Happy Clicks,Inc What Is the Amount of Manufacturing Overhead Cost Allocated to Machine