Fell Corporation manufactures computers Assume that Fell all

Fell Corporation manufactures computers. Assume that Fell: allocates manufacturing overhead based on machine hours. anufacturing overhead costs. The predetermined overhea . estimated 12.000 machine hours and $90,000 of m rate is $7.50 per machine hour. actually used 16,000 machine hours and incurred the following actual costs: ?(Click the icon to view the costs.) How much manufacturing overhead would Fell allocate? A. $80,000 O B. $90,000 OC. $120,000 O D. $219,000

Solution

Solution: 120,000

Working:

Predetermined manufacturing overhead rate = $7.50

Mnaufacturing overhead rate = 16000 * $7.50 = 120,000