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Goshia [24]
3 years ago
5

Apple Tree Enterprises allocated overhead based on direct material cost and has a predetermined overhead rate of 160%. During th

e current period, direct labor cost is $67,000 and direct materials cost is $73,000. In the current period, determine the amount of overhead to be applied by Apple Tree Enterprises.
Business
1 answer:
shusha [124]3 years ago
7 0

Answer:

Allocated MOH= $116,800

Explanation:

Giving the following information:

predetermined overhead rate= 160% of direct material

Direct materials= $73,000

<u>To calculate the allocated overhead, we need to use the following formula:</u>

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Allocated MOH= 1.6*73,000

Allocated MOH= $116,800

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