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Sveta_85 [38]
3 years ago
12

Harwood Company uses a job-order costing system that applies overhead cost to jobs on the basis of machine-hours. The company's

predetermined overhead rate of $2.40 per machine-hour was based on a cost formula that estimates $192,000 of total manufacturing overhead for an estimated activity level of 80,000 machine-hours.
Business
1 answer:
Damm [24]3 years ago
5 0

Answer:

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base (machine hours)

Explanation:

Giving the following information:

The company's predetermined overhead rate of $2.40 per machine-hour was based on a cost formula that estimates $192,000 of total manufacturing overhead for an estimated activity level of 80,000 machine-hours.

To allocated overhead costs to a specific job, you need to multiply the estimated rate for the number of machine-hours required for the job.

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base (machine hours)

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