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Lancelot Manufacturing is a small textile manufacturer using machine - hours as the single indirect - cost rate to allocate m

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Answer #1

Answer: C. $3,000

EXPLANATION

Manufacturing overhead costs will be allocated to this job = Machine-hours for Case High School Job x Manufacturing overhead costs for the company / Machine-hours for the company

= 800 mh x $40,000 / 80,000 mh

= $400

Therefore, total Manufacturing overhead costs will be allocated to this job = Direct Materials + Direct Labor + Manufacturing Overhead

= $2,100 + $500 + $ 400

= $3,000

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