Question

Here are selected basic data for Wilson Company: Estimated manufacturing overhead Estimated labor hours Actual direct labor hours Estimated direct labor cost Actual direct labor cost Factory depreciation $243,750 35,000 36,000 $325,000 $320,000 $66,300 Factory utilities Indirect labor Sales commissions Factory rent Factory property taxes Indirect materials $30,400 $22,800 $54,300 $47,800 $29,100 $33,300 If the company allocates overhead based on direct labor cost, what are the total actual manufacturing overhead costs? O A. $284,000 OB. $261,200 OC. $173,600 OD. $229,700 Click to select your answer.

Answer 1

Total actual manufacturing overhead costs:-

= Factory depreciation + Factory utilities + indirect labour + Factory rent + Factory property taxes + indirect material

=$ 66,300 + 30,400 + 22,800 + 47,800 + 29,100 + 33,300

= $ 229,700 [Option D]

Hence Total actual manufacturing overhead costs is $ 229,700

Note:- Sales commission is not manufacturing overhead but is Selling & distribution overhead, So not considered in calculation.