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Olympia Manufacturing Uses a Predetermined Overhead Allocation Rate Based on a Percentage

Question 115

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Olympia Manufacturing uses a predetermined overhead allocation rate based on a percentage of direct labor cost.At the beginning of the year,Olympia estimated total manufacturing overhead costs at $1,020,000 and total direct labor costs at $830,000.In June,Job 511 was completed.The details of Job 511 are shown below.  Direct materials cost $25,000 Direct labor cost $13,000 Direct labor hours 500 hours  Units of product produced 200 hours \begin{array} { | l | r | } \hline \text { Direct materials cost } & \$ 25,000 \\\hline \text { Direct labor cost } & \$ 13,000 \\\hline \text { Direct labor hours } & 500 \text { hours } \\\hline \text { Units of product produced } & 200 \text { hours } \\\hline\end{array} What is the amount of manufacturing overhead costs allocated to Job 511? (Round any percentages to two decimal places and your final answer to the nearest dollar.)


A) $15,976
B) $30,723
C) $10,578
D) $20,343

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