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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:

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

What is Gell​'s actual manufacturing overhead​ cost?

Respuesta :

Answer:

$83,000

Explanation:

The computation of the actual manufacturing overhead cost is shown below:

= Indirect labor + depreciation on plant + machinery repair + plant supplies + plant utilities

= $11,000 + $48,000 + $11,000 + $6,000 + $7,000

= $83,000

Only these five items would be considered as a actual manufacturing cost. The rest of the items would be ignored

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