Smarty Pants Corporation manufactures high end custom batche

Smarty Pants Corporation manufactures high end custom batches of designer pant suits. The company allocates manufacturing overhead based on machine hours. Selected data for costs incurred for Job 612 are as follows: $5,500 Direct materials used Direct labor hours worked Machine hours used Direct labor rate per hour Predetermined overhead rate based on machine hours $18 6 What amount of manufacturing overhead would be allocated to Job 612? B. $5,500 O C. $8,480

Solution

Manufacturing overhead allocated=Predetermined overhead rate*Machine hours used

which is equal to

=($16*530 hours)

which is equal to

=$8480.