Job 140 requires $12,000 of direct materials, $6,700 of direct labor, 550 direct labor hours, and 270 machine hours. It also requires 9 hours of inspection at $40 per hour. Manufacturing overhead is computed at $28 per direct labor hour used and $42 per machine hour used. The total amount of overhead allocation is: (a) $26,740 (b) $15,400 (c) $45,440 (d) $34,100

Question

Cory Miranda

Business

26 March, 10:42

Job 140 requires $12,000 of direct materials, $6,700 of direct labor, 550 direct labor hours, and 270 machine hours. It also requires 9 hours of inspection at $40 per hour. Manufacturing overhead is computed at $28 per direct labor hour used and $42 per machine hour used. The total amount of overhead allocation is: (a) $26,740 (b) $15,400 (c) $45,440 (d) $34,100

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Answers (1)

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Miller · Answer 1

A.) $26,740

Explanation:

The problem simply asks for the "Total amount of overhead allocation"

So, we just have to follow what the problem gave us.

Job 140 requires 550 direct labor hours and the direct labor per hour rate is $28.

Also, it needs 270 machine hours and the machine hour rate is $42.

Calculation:

550 multiplied by $28 = $15,400

270 multiplied by $42 = $11,340

Finally, just add the two (15,400 + 11,340) and it would give us $26,740 which is the total amount of overhead allocation.