Before the year began, Murphy Manufacturing estimated that manufacturing overhead for the year would be $175,500 and that 13,000 direct labor hours would be worked. Actual results for the year included the following:
Actual manufacturing overhead cost $184,000
Actual direct labor hours 14,500
The amount of manufacturing overhead allocated for the year based on direct labor hours would have been
A) $179,750.
B) $195,750.
C) $175,500.
D) $184,000.
B
Explanation: B) $175,000 / 13,000 = $13.50 × 14,500 = $195,750
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