Happy Clicks,Inc.uses a predetermined overhead allocation rate of $5.50 per machine hour.Actual overhead costs incurred during the year are as follows: $$\begin{array} { | l | l | }
\hline \text { Indirect materials } & \$ 6700 \
\hline \text { Indirect labor } & \$ 2200 \
\hline \text { Plant depreciation } & \$ 47 \
\hline \text { Plant utilities and insurance } & \$ 9800 \
\hline \text { Other plant overhead costs } & \$ 12,400 \
\hline \text { Total machine hours used during year } & 7600 \text { hours } \
\hline
\end{array}$$ 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 $5.50 per machine hour.Actual overhead costs incurred during the year are as follows: $$\begin{array} { | l | l | } 
\hline \text { Indirect materials } & \$ 6700 \
\hline \text { Indirect labor } & \$ 2200 \
\hline \text { Plant depreciation } & \$ 47 \
\hline \text { Plant utilities and insurance } & \$ 9800 \
\hline \text { Other plant overhead costs } & \$ 12,400 \
\hline \text { Total machine hours used during year } & 7600 \text { hours } \
\hline
\end{array}$$ 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 to Work-in-Process Inventory is calculated by multiplying the predetermined overhead allocation rate by the total machine hours used during the year: $5.50 per machine hour * 7600 hours = $41,800.

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