Two jobs were worked on during the year: Job A-101 and Job A-102.The number of direct labor-hours spent on Job A-101 and Job A-102 were 1,200 and 1,000,respectively.The actual manufacturing overhead was $37,000.What was the amount of manufacturing overhead applied to Job A-101? $$\begin{array} { | l | r | }
\hline \text { Estimated manufacturing overhead for the year } & \$ 30,000 \
\hline \text { Estimated direct labor hours for the year } & 2,000 \
\hline
\end{array}$$

Question

Two jobs were worked on during the year: Job A-101 and Job A-102.The number of direct labor-hours spent on Job A-101 and Job A-102 were 1,200 and 1,000,respectively.The actual manufacturing overhead was $37,000.What was the amount of manufacturing overhead applied to Job A-101? $$\begin{array} { | l | r | } 
\hline \text { Estimated manufacturing overhead for the year } & \$ 30,000 \
\hline \text { Estimated direct labor hours for the year } & 2,000 \
\hline
\end{array}$$

Quizplus · Accepted Answer

To calculate the amount of manufacturing overhead applied to Job A-101, we need to know the predetermined overhead rate. This can be calculated by dividing the total manufacturing overhead cost by the total direct labor hours across all jobs. 
Predetermined overhead rate = Total manufacturing overhead cost / Total direct labor hours 
= $37,000 / (1,200 + 1,000) 
= $37,000 / 2,200 
= $16.82 per direct labor hour 
The amount of manufacturing overhead applied to Job A-101 can now be calculated by multiplying the direct labor hours for that job by the predetermined overhead rate. 
Manufacturing overhead applied to Job A-101 = Direct labor hours for Job A-101 x Predetermined overhead rate 
= 1,200 x $16.82 
= $20,184 
Therefore, option B is the correct answer as it is the closest to $20,184.

Two Jobs Were Worked on During the Year: Job A-101