Answer:
Allocated MOH= $188,627
Explanation:
Giving the following information:
Estimated overhead= $241,800
Estimated direct labor hour= 6,800
Actual direct labor-hours were 5,300.
First, we need to calculate the estimated overhead rate:
To calculate the estimated manufacturing overhead rate we need to use the following formula:
Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Estimated manufacturing overhead rate= 241,800/6,800= $35.59 per direct labor hour.
Now, based on actual direct labor hours, we can allocate overhead:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Allocated MOH= 35.59*5,300= $188,627
