Manufacturing Overhead Is Allocated to Products Based on the Number

Multiple Choice

Manufacturing overhead is allocated to products based on the number of machine hours required.In a year when 40,000 machine hours and 60,000 direct labor hours were anticipated, indirect costs were budgeted at $252,000.If production of wagons requires 9,000 machine hours and 10,800 direct labor hours, how much manufacturing overhead will be allocated to wagons?

A) $45,360
B) $56,700
C) $2,268
D) $28