Answered

Westonci.ca offers quick and accurate answers to your questions. Join our community and get the insights you need today. Explore a wealth of knowledge from professionals across different disciplines on our comprehensive platform. Explore comprehensive solutions to your questions from a wide range of professionals on our user-friendly platform.

Assume (1) estimated fixed manufacturing overhead for the coming period of $204,000, (2) estimated variable manufacturing overhead of $2.00 per direct labor hour, (3) actual manufacturing overhead for the period of $320,000, (4) actual direct labor-hours worked of 54,000 hours, and (5) estimated direct labor-hours to be worked in the coming period of 55,000 hours. The amount of overhead applied to production during the period is closest to:

Sagot :

facundobuzzetti

Answer:

Allocated MOH= $308,340

Explanation:

First, we need to calculate the predetermined overhead rate:

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Predetermined manufacturing overhead rate= (204,000/55,000) + 2

Predetermined manufacturing overhead rate= $5.71 per direct labor hour

Now, we can allocate overhead based on actual hours:

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Allocated MOH= 5.71*54,000

Allocated MOH= $308,340

Thanks for stopping by. We are committed to providing the best answers for all your questions. See you again soon. We appreciate your time. Please revisit us for more reliable answers to any questions you may have. We're here to help at Westonci.ca. Keep visiting for the best answers to your questions.