Question

based on this information, the amount of overhead allocated to a job that used 300 direct labor hours is $

Answer 1

The amount of overhead allocated to a job that used 300 direct labor hours is $900.

Overhead allocated:

First step is to calculate the predetermined overhead rate per direct labor hour

Using this formula

Predetermined overhead rate=Estimated manufacturing overhead/Estimated direct labor hours

Predetermined overhead rate=$450,000/150,000

Second step is to calculate the overhead allocated

Overhead allocated=Predetermined overhead rate × Direct labor hours

Overhead allocated=$3×300

Overhead allocated=$900

Inconclusion the amount of overhead allocated to a job that used 300 direct labor hours is $900.

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