Answer:
Allocated MOH= $523,200
Explanation:
Giving the following information:
Estimated:
estimated direct labor-hours= 21,920 hours
total estimated manufacturing overhead= $526,080
The actual direct labor-hours for the year were 21,800 hours.
To allocate the overhead, first, we need to calculate the predetermined overhead rate:
Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Estimated manufacturing overhead rate=526,080/21,920= $24 per direct labor hour
Now, we can allocate the overhead:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base= 24*21,800= $523,200
