What are the total manufacturing overhead costs allocated to the Car Seats for the current month?
A. $69,837.
B. $102,873.
C. $37,290.
D. $210,000.
A
($105,000 factory utilities cost/14,258 total direct labor hours × 4,619 hours allocated to Car Seats) + (75,000 foremen salaries/21,000 machine hours × 7,500 machine hours allocated to Car Seats) + ($30,000 setup costs/83 setups × 25 production runs allocated to Car Seats) = $69,837 rounded.
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