Answer:
The correct answer is B: $195,750
Explanation:
Giving the following information:
Manufacturing overhead for the year would be $175,000 and 13,000 direct labor hours would be worked.
Actual results for the year included the following:
Actual MOH cost $184,000
Actual DL hours 14,500
First, we need to calculate the manufacturing overhead rate:
manufacturing overhead rate= total estimated manufacturing overhead for the period/ total amount of allocation base
manufacturing overhead rate= 175000/13000= 13.5
Now, we can calculate the amount of manufactured overhead allocated:
Manufactured overhead allocated= overhead rate* actual direct labor hours
Manufactured overhead allocated= 13.5*14500= $195,750