Answer:
Estimated manufacturing overhead rate= 10,500/5,000= $2.1 per machine hour
Allocated MOH= $11,130
Explanation:
Giving the following information:
Estimated overhead costs= $10,500
Estimated machine-hours= 5,000
Actual machine-hours= 5,300 machine hours.
To calculate the estimated manufacturing overhead rate we need to use the following formula:
Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Estimated manufacturing overhead rate= 10,500/5,000= $2.1 per machine hour
Now, we can allocate overhead based on actual machine-hours:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Allocated MOH= 2.1*5,300= $11,130
