Mansfield Corporation estimates its manufacturing overhead costs to be $160,000 and its direct labor costs to be $320,000 for 2012. The actual manufacturing labor costs were $80,000 for job 1, $120,000 for job 2 and $160,000 for job 3 during 2012. Manufacturing overhead is applied to jobs on the basis of direct labor costs using a predetermined overhead rate. The actual manufacturing overhead cost for the year was $172,000. The amount of overhead assigned to Job 3 during 2012 was: $71,110. $80,000. $160,000. $320,000.

Question

Jordyn Taylor

Business

26 March, 06:43

Mansfield Corporation estimates its manufacturing overhead costs to be $160,000 and its direct labor costs to be $320,000 for 2012. The actual manufacturing labor costs were $80,000 for job 1, $120,000 for job 2 and $160,000 for job 3 during 2012. Manufacturing overhead is applied to jobs on the basis of direct labor costs using a predetermined overhead rate. The actual manufacturing overhead cost for the year was $172,000. The amount of overhead assigned to Job 3 during 2012 was: $71,110. $80,000. $160,000. $320,000.

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Answers (1)

Know the Answer?

Stephany Farley · Answer 1

The answer is $80,000

Explanation:

160,000 MO

320,000 DL$

Rate MO/DL$ = 160,000/320,000 = 0.5

80000 DL - -> x 0.5 = 40,000 MO

120000 DL - -> x 0.5 = 60,000 MO

160000 DL - -> x0.5 = 80,000 MO

Total MO 180,000

Actual 172,000

Overapplied MO for 8,000