Reference no: EM132501221

Heathcote Corporation is a manufacturer that uses job-order costing. The company closes out any overapplied or underapplied overhead to Cost of Goods Sold at the end of the year. The company has supplied the following data for the just completed year:

Estimated total manufacturing overhead at the beginning of the year$546,000

Estimated direct labor-hours at the beginning of the year 42,000direct labor-hours

Results of operations:

Actual direct labor-hours 47,000

direct labor-hours

Manufacturing overhead:

Indirect labor cost$152,000

Other manufacturing overhead costs incurred$454,000

Cost of goods manufactured$1,569,000

Cost of goods sold (unadjusted)$1,458,000

Question 1: The total amount of manufacturing overhead applied to production is:

Multiple Choice

$611,000
$546,000
$606,000
$1,755,000