Answer:
Overhead= $17,000
Explanation:
Giving the following information:
estimated total factory overhead costs of $116,000
expected direct labor hours of 11,600
Job number 117 incurs 1,700 direct labor hours
First, we need to calculate the predetermined manufacturing overhead rate:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= 116,000/11,600
Predetermined manufacturing overhead rate= $10 per direct labor hour
Now, we can determine the amount of allocated overhead:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Allocated MOH= 10*1,700= 17,000
