Answer:
Allocated MOH= $375,700
Explanation:
Giving the following information:
Estimated total overhead= $368,900
Estimated direct labor= $217,000
Actual direct labor= $221,000
<u>First, we need to calculate the predetermined overhead rate:</u>
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= 368,900/217,000
Predetermined manufacturing overhead rate= $1.7 per direct labor dollar
<u>Now, we can allocate overhead based on actual labor costs:</u>
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Allocated MOH= 1.7*221,000
Allocated MOH= $375,700