Answer:
Allocated MOH= $297,435
Explanation:
Giving the following information:
Budgeted factory overhead was $289,920
budgeted machine-hours were 19,200.
Actual machine-hours were 19,750
First, we need to calculate the estimated overhead rate.
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= 289,920/19,200= $15.06 per machine hour.
Now, we can allocate overhead:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Allocated MOH= 15.06*19,750= $297,435
