Answer:
The correct answer is D.
Explanation:
Giving the following information:
Modular Homes - Prefab Barns
Total expected units produced 6,200 9,200
Expected direct labor-hours per unit 820 320
The total materials handling cost for the year is expected to be $321,120.
First, we need to calculate the total amount of expected direct-labor hours, because it will be used as the allocation base:
Total direct-labor hours= (6,200units*820hours) + (320hours*9,200units)= 8,028,000 hours
Now, we can determine the estimated manufacturing overhead rate:
Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Estimated manufacturing overhead rate= 321,120/8,028,000= $0.04 per direct labor hour
Finally, we can allocate overhead:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Allocated overhead= 0.04* (320hours*9,200units)= $117,760
