Question

Athens Machining had one job in Work in Process Inventory at the beginning of the month: Job 1376. The costs incurred to date on the job included $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

The manufacturing overhead (MOH) should the manager allocate to Job 1376 for the month is $2,240.

Step-by-step explanation:

The manufacturing overhead (MOH) in this is calculated by the multiplication of the cost incurred to date per direct labor hour by the total direct labor hours. This is just how it follows:

$14 per direct labor hour × 160 direct labor hours : $2,240