Boston Company manufactures pipes and applies manufacturing overhead costs to production using a budgeted predetermined overhead rate of $18 per direct labor-hour. The following data are obtained from the accounting records for July 2019: Direct materials $130,000 Direct labor (3,600 hours @ $12 per hour) $43,200 Indirect labor $9,000 Plant facility rent $20,000 Depreciation on plant machinery $8,000 Sales & Administrative expenses $52,000 The actual amount of manufacturing overhead costs incurred in July 2019 equals:

Question

Natalia Maynard

Business

7 May, 01:51

Boston Company manufactures pipes and applies manufacturing overhead costs to production using a budgeted predetermined overhead rate of $18 per direct labor-hour. The following data are obtained from the accounting records for July 2019: Direct materials $130,000 Direct labor (3,600 hours @ $12 per hour) $43,200 Indirect labor $9,000 Plant facility rent $20,000 Depreciation on plant machinery $8,000 Sales & Administrative expenses $52,000 The actual amount of manufacturing overhead costs incurred in July 2019 equals:

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Lilyana · Answer 1

Actual overhead = $37,000

Explanation:

Giving the following information:

Boston Company manufactures pipes and applies manufacturing overhead costs to production using a budgeted predetermined overhead rate of $18 per direct labor-hour.

Allocated overhead = $18*3600 = $64,800

Actual overhead:

Indirect labor $9,000

Plant facility rent $20,000

Depreciation on plant machinery $8,000

Total = $37,000