Question

Before the year​ began, Venus Manufacturing estimated that manufacturing overhead for the year would be $ 175 comma 900 and that 25 comma 900 direct labor hours would be worked. Actual results for the year included the​ following: Actual manufacturing overhead cost $ 182 comma 000 Actual direct labor hours 20 comma 100 If the company allocates manufacturing overhead based on direct labor​ hours, the manufacturing overhead for the year would have been​ _____ (Round intermediary calculations to the nearest​ cent.)

Answer 1

Answer:

Allocated MOH= $136,479

Explanation:

Giving the following information:

Estimated that manufacturing overhead for the year= $175,900

Estimated Direct labor hours= 25,900

Actual direct labor hours= 20,100

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= 175,900/25,900= $6.79 per direct labor hour

Now, we can allocate the overhead:

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

Allocated MOH= 6.79*20,100= $136,479