What amount of manufacturing overhead costs will allocated

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Question - Lancelot Manufacturing is a small textile manufacturer using machine-hours as the single indirect-cost rate to allocate manufacturing overhead costs to the various jobs contracted during the year. The following estimates are provided for the coming year for the company and for the Case High School band jacket job.

 

Company

Case High School Job

Direct materials

$60,000

$2,400

Direct labor

$15,000

$600

Manufacturing overhead costs

$50,000

 

Machine-hours

100,000 mh

1,000 mh

Required - What amount of manufacturing overhead costs will be allocated to this job?

A) $500

B) $1,250

C) $450

D) $650

Reference no: EM133064841

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