Indirect labor $ 11,000 Depreciation on plant 48,000 Machinery repair 11,000 Direct labor 75,000 Plant supplies 6,000 Plant utilities 7,000 Advertising 35,000 Sales commissions 27,000

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Gell Corporation manufactures computers. Assume that Gell:

• allocates manufacturing overhead based on machine hours

• estimated 12,000 machine hours and $93,000 of manufacturing overhead costs

• actually used 16,000 machine hours and incurred the following actual costs:

What is Gell’s actual manufacturing overhead cost?

a. $158,000

b. $83,000

c. $145,000

d. $220,000

Indirect labor
$ 11,000
Depreciation on plant
48,000
Machinery repair
11,000
Direct labor
75,000
Plant supplies
6,000
Plant utilities
7,000
Advertising
35,000
Sales commissions
27,000
Transcribed Image Text:Indirect labor $ 11,000 Depreciation on plant 48,000 Machinery repair 11,000 Direct labor 75,000 Plant supplies 6,000 Plant utilities 7,000 Advertising 35,000 Sales commissions 27,000
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