The debit to the Manufacturing Overhead account in this entry represents indirect labor costs.
-The manufacturing overhead applied is:

Question

Quizplus · Accepted Answer

The manufacturing overhead applied is calculated by multiplying the predetermined overhead rate by the actual amount of the allocation base used. In this case, the predetermined overhead rate is $2 per machine hour ($60,000 / 30,000 machine hours) and the actual machine hours used was 14,500, so the manufacturing overhead applied is:
$2 per machine hour x 14,500 machine hours = $29,000. Therefore, the correct answer is B, $29,000.

The Debit to the Manufacturing Overhead Account in This Entry