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klasskru [66]
3 years ago
13

Harms Shoe Company applies manufacturing overhead based on direct labor hours as the allocation volume. Information concerning m

anufacturing overhead and labor for July follows: Estimated direct labor 6,100 hours at $14.20 per hour Estimated manufacturing overhead $277,184. How much overhead will be allocated during July to products with a direct labor of 5 hours?
Business
1 answer:
andriy [413]3 years ago
6 0

Answer:

Allocated overhead for july $227.20

Explanation:

Given data:

direct labor hours is 6100 hr

wages of labor is $14.20/hr

manufacturing overhead is $277,184

duration of labor is 5 hr

overhead allocation rate is given as

allocation rate = manufacturing overhead/ direct labor hour

allocation rate = \frac{277184}{6100} = $45.44/ direct labor hr

Allocated overhead for july = 5\times 45.44 =\$ 227.20

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