Answer:
Allocated MOH= $274,320
Explanation:
Giving the following information:
Budgeted factory overhead was $266,400, budgeted machine-hours were 18,500. The actual machine-hours were 19,050.
First, we need to calculate the estimated manufacturing overhead rate. Then, we can allocate overhead.
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= 266,400/18,500= $14.4 per machine-hour.
Now, we can allocate overhead:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Allocated MOH= 14.4*19,050= $274,320
