The following information was gathered for the Buckley Corporation for the most recent year.Manufacturing overhead is allocated using direct labor hours. $\begin{array}{|l|r|}
\hline \text { Estimated direct labor hours } & 54,000 \
\hline \text { Actual direct labor hours } & 57,000 \
\hline \text { Estimated manufacturing overhead costs } & \$ 729,000 \
\hline \text { Actual manufacturing overhead costs } & \$ 685,000\
\hline
\end{array}$

- What amount of manufacturing overhead would be allocated for the year?

Question

The following information was gathered for the Buckley Corporation for the most recent year.Manufacturing overhead is allocated using direct labor hours. $\begin{array}{|l|r|}
\hline \text { Estimated direct labor hours } & 54,000 \
\hline \text { Actual direct labor hours } &  57,000 \
\hline \text { Estimated manufacturing overhead costs } & \$  729,000 \
\hline \text { Actual manufacturing overhead costs } & \$  685,000\
\hline
\end{array}$

- 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 total direct labor hours with the manufacturing overhead rate per direct labor hour.

Manufacturing overhead rate per direct labor hour = Total manufacturing overhead / Total direct labor hours

Manufacturing overhead rate per direct labor hour = $1,290,150 / 165,000 direct labor hours = $7.82 per direct labor hour

Manufacturing overhead allocated for the year = Direct labor hours * Manufacturing overhead rate per direct labor hour

Manufacturing overhead allocated for the year = 165,000 direct labor hours * $7.82 per direct labor hour = $769,500

Therefore, the best choice is C, $769,500.

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