Question

Company Dept. A Dept B. Predetermined overhead rate per direct labor hour $2.10 $2.40 $1.80 Direct labor hours hours worked on Job ABC 30 17 13 Based on this information, the overhead applied to Job ABC using multiple predetermined overhead rates is ______.

Answer 1

Answer:

Total applied overhead= $64.2

Explanation:

Giving the following information:

Dept. A Dept B.

Predetermined overhead rate per direct labor hour $2.40 $1.80

Job ABC:

Direct labor hours Dept A= 17

Direct labor hours Dept B= 13

We need to use the departmental predetermined overhead rates.

To allocate overhead, we need to use the following formula:

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

Dept A= 2.4*17= $40.8

Dept B= 1.8*13= $23.4

Total applied overhead= $64.2