Question

Benton Lamps applies overhead using direct labor hours. Budgeted total overhead cost was $472,000 and estimated direct labor hours were 118,000 for the first quarter. The standard direct labor quantity is 4 hours per lamp, and the company produced 9,800 lamps in January. This required 39,500 direct labor hours. What amount should be used for overhead applied in the total overhead variance calculation?

Answer 1

Answer:

Allocated MOH= $158,000

Explanation:

Giving the following information:

The standard direct labor quantity is 4 hours per lamp, and the company produced 9,800 lamps in January. This required 39,500 direct labor hours.

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Allocated MOH= 4*39,500= $158,000