Answer:
Allocated overhead= $6,500
Explanation:
<u>Giving the following information: </u>
<u></u>
Estimated overhead costs:
Materials handling $ 160,000 3,200 pounds
Requirements for Job #971
Direct materials 130 pounds
<u>First, we need to calculate the activity rate for material handling:</u>
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Material handling= 160,000 / 3,200
Material handling= $50 per pound
<u>Now, we can allocate overhead costs to Job 971:</u>
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Allocated overhead= 50*130
Allocated overhead= $6,500