Question

# ​Sybil, Inc. uses a predetermined overhead allocation rate to allocate manufacturing overhead costs to jobs. The...

​Sybil, Inc. uses a predetermined overhead allocation rate to allocate manufacturing overhead costs to jobs. The company recently completed Job 300X. This job used 14 machine hours and 4 direct labor hours. The predetermined overhead allocation rate is calculated to be​ \$44 per machine hour. What is the amount of manufacturing overhead allocated to Job 300X using machine hours as the allocation​ base?

a. 176

b. 616

c. 792

d. 440

Sybil inc.

Used machine hour = 14

Direct labour hour = 4

Predetermined overhead allocation \$44 per machine hour

Machine hour as the allocation base

.

Amount of manufacturing overhead cost = predetermined overhead allocation rate * actual quantity of the allocation base

predetermined overhead allocation rate = 44

actual quantity of the allocation base = 14 machine hour

.

Amount of manufacturing overhead cost =44 * 14 = 616

Amount of manufacturing overhead cost is b.616

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