Answer:
Instructions are listed below
Explanation:
Giving the following information:
Total manufacturing overhead= $ 2,986,000
The firm estimates total direct labor cost for the year to be $1,866,250.
The firm uses direct labor cost as the cost driver to apply overhead to clients.
1) Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base= 2986000/1866250= $1.6 per direct labor $
2) the firm worked for many clients; data for two of them follow: Gargus account Direct labor $ 3,200
Feller account Direct labor $ 9,200
Allocated MOH= Actual amount of allocation base*Estimated manufacturing overhead rate
Gargus overhead= 3200*1.6= 5120
Feller= 9200*1.6= 14720
3) Total cost Gargus= 3200 + 5120= $8,320
TC Feller= 14720 + 9200= $23,920
