Answer:
Allocated overhead= $216,000
Explanation:
Giving the following information:
Estimated overhead= $225,000
Estimated machine-hours= 25,000
At standard, each unit of finished product requires 3 machine-hours. Units of product completed 8,000 units
<u>To allocate overhead, we need to use the standard number of machine-hours that would take to produce 8,000 units.</u>
First, we need to determine the estimated overhead rate:
Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Estimated manufacturing overhead rate= 225,000/25,000= &9 per machine hour
Now, we can allocate overhead:
Allocated overhead= 9*(8,000*3)= $216,000
