Answer:
January:
Total overhead= $11,948
February:
Total overhead= $11,360
March:
Total Overhead= $13,302.5
Explanation:
Giving the following information:
Budgeted direct labor hours for the first 3 months of the coming year are:
January= 13,140
February= 12,300
March 15,075
The variable overhead rate is $0.70 per direct labor hour. Fixed overhead is budgeted at $2,750 per month.
To calculate the total overhead for each month, we need to sum the total variable overhead and the fixed overhead. <u>Total variable overhead is the result of applying the variable overhead rate multiplicated with the direct labor hour.</u>
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
January:
Total overhead= (0.70*13,140) + 2,750= $11,948
February:
Total overhead= (0.70*12,300) + 2,750= $11,360
March:
Total Overhead= (0,70*15,075) + 2,750= $13,302.5
