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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
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