Question

Bag​ Ladies, Inc. manufactures two kinds of bagslong dashtotes and satchels. The company allocates manufacturing overhead using a single plantwide rate with direct labor cost as the allocation base. Estimated overhead costs for the year are $ 25 comma 000. Additional estimated information is given below. Totes Satchels Direct materials cost per unit $ 31 $ 44 Direct labor cost per unit $ 50 $ 65 Number of units 510 350 Calculate the amount of overhead to be allocated to Totes.​ (Round any percentages to two decimal places and your final answer to the nearest​ dollar.) A. $ 343 B. $ 500 C. $ 11 comma 787 D. $ 13 comma 212

Answer 1

Allocated MOH Totes= $13,209

Step-by-step explanation:

Giving the following information:

The company allocates manufacturing overhead using a single plantwide rate with direct labor cost as the allocation base. The estimated overhead costs for the year are $ 25,000.

Direct labor cost per unit:

Totes= $ 50

Satchels= $ 65

Number of units:

Totes= 510

Satchels= 350

Total= 860

Total direct labor cost= 50*510 + 65*350= $48,250

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

Estimated manufacturing overhead rate= 25,000/48,250= $0.518 per labor dollar

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

Allocated MOH Totes= 0.518* (50*510)= $13,209