How much manufacturing overhead would Dell allocate?

a. $108

c. $85

b. $90

d. $220 

The following information about Dell Corporation's manufacturing of computers. Assume Dell 

• Allocates manufacturing overhead based on machine hours.

• Budgeted 10 million machine hours and $90 million of manufacturing over- head costs.

• Actually used 12 million machine hours and incurred the following actual costs (in millions):

Transcribed Image Text:

Indirect labor $10 Depreciation on plant 47 Machinery repair 15 Direct labor 75 Plant supplies Plant utilities Advertising Sales commissions 5 8 35 25