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Kell Corporation manufactures computers. Assume that Kell​:   • allocates manufacturing overhead based on machine hours • estimated 12,000 machine hours and $92,000 of manufacturing overhead costs • actually used 15,000 machine hours and incurred the following actual​ costs: Indirect labor $10,000 Depreciation on plant 47,000 Machinery repair 17,000 Direct labor 71,000 Plant supplies 5,000 Plant utilities 6,000 Advertising 33,000 Sales commissions 23,000 What is Kell​'s actual manufacturing overhead​ cost?

Kell Corporation manufactures computers. Assume that Kell​:   • allocates manufacturing overhead based on machine hours • estimated 12,000 machine hours and $92,000 of manufacturing overhead costs • actually used 15,000 machine hours and incurred the following actual​ costs: Indirect labor $10,000 Depreciation on plant 47,000 Machinery repair 17,000 Direct labor 71,000 Plant supplies 5,000 Plant utilities 6,000 Advertising 33,000 Sales commissions 23,000 What is Kell​'s actual manufacturing overhead​ cost?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Kell Corporation manufactures computers. Assume that Kell​:
 
•
allocates manufacturing overhead based on machine hours
•
estimated
12,000
machine hours and
$92,000
of manufacturing overhead costs
•
actually used
15,000
machine hours and incurred the following actual​ costs:
Indirect labor
$10,000
Depreciation on plant
47,000
Machinery repair
17,000
Direct labor
71,000
Plant supplies
5,000
Plant utilities
6,000
Advertising
33,000
Sales commissions
23,000
What is Kell​'s actual manufacturing overhead​ cost?
 

 

0 A. $156,000 0 B. $85,000 о с. $141,000 0 D. $212,000 000 m j
Transcribed Image Text:0 A. $156,000 0 B. $85,000 о с. $141,000 0 D. $212,000 000 m j
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