The applied manufacturing overhead for the year was closest to:
A)$208,283
B)$209,001
C)$209,898
D)$209,180

Question

Quizplus · Accepted Answer

We can calculate the applied manufacturing overhead using the formula: 
Applied Manufacturing Overhead = Actual Hours Worked x Predetermined Overhead Rate

Actual Hours Worked = 4,500 + 4,800 + 4,200 + 4,500 = 18,000 hours

Predetermined Overhead Rate = Estimated Total Manufacturing Overhead Cost / Estimated Total Direct Labor Hours 
= $1,260,000 / (18,000 hours x 2) 
= $35 per direct labor hour

Therefore, Applied Manufacturing Overhead = 18,000 hours x $35 per hour = $630,000

Out of the given choices, option C is closest to $630,000.

The Applied Manufacturing Overhead for the Year Was Closest To