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Georgia [21]
2 years ago
4

Ed was working on a custom-made workbench for a customer. The job, TB0414, was begun in November. At the end of November, the jo

b cost sheet for TB0414 showed direct materials of $215, direct labor of 14 hours at $18 per hour, and overhead of 50% of direct labor cost. During December, Ed’s time ticket showed 15 hours on Job TB0414, 25 hours on Job TB0614, 10 hours of maintenance on the lathe, and 40 hours on a new job, DR1014. What is the total amount of overhead applied to TBO414?
Business
1 answer:
shtirl [24]2 years ago
5 0

Answer:

Allocated MOH= $261

Explanation:

Giving the following information:

Predetermined overhead rate= 50% of direct labor cost

<u>To allocate overhead to Job TB0414, we need to use the following formula:</u>

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

<u>First, we need to determine the total labor cost:</u>

<u></u>

TB0414:

Direct labor hours= 14 + 15 = 29

Total direct labor cost= 29*18= $522

<u>Now, the allocated overhead:</u>

Allocated MOH= 522*0.5

Allocated MOH= $261

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