Answer:
Allocated overhead= $173,137.5
Explanation:
Giving the following information:
Estimated overhead= $243,000
Estimated direct-labor hours= 8,000
Actual direct labor-hours were 5,700.
First, we need to calculate the predetermined overhead rate:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= 243,000/8,000
Predetermined manufacturing overhead rate= $30.375 per direct labor hour
Now, we can allocate overhead based on actual direct labor hours:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Allocated overhead= 30.375*5,700= $173,137.5
