Question

Athens Machining had one job in Work in Process Inventory at the beginning of the month: Job 1376. Athens has a predetermined overhead rate of $14.00 per direct labor hour. The total direct labor hours were 160 direct labor hours. How much manufacturing overhead (MOH) should the manager allocate to Job 1376?

Answer 1

job N° 1376 manufacturng overhead 2,560

Step-by-step explanation:

For this company, the overhead is calculate based on direct labors.

It will be calculated by multiplying the cost driver by the overhead rate:

overhead rate x direct labor hours of job:

14.00 x 160 = 2,560

6,400 will be the allocate overhead for job N° 1376

This will latter be compare with the actual overhead to check for underapplied or overapplied overhead and adjust hte difference.