Mesa corp. allocates overhead to production on the basis of direct labor costs. mesa's total estimated overhead is $450,000 and
estimated direct labor is $180,000. determine the amount of overhead to be allocated to finished goods inventory if there is $20,000 of total direct labor cost in the jobs in the finished goods inventory. $8,000. $20,000. $70,000. $50,000. $90,000.
Hi there First find the predetermined overhead rate Predetermined oH rate is total estimated overhead divided by estimated direct labor
Predetermined oH rate is 450,000÷180,000 =2.5
the amount of overhead to be allocated to finished goods inventory if there is $20,000 of total direct labor cost in the jobs in the finished goods inventory is 2.5×20,000 =50,000. ...answer
