Final answer:
Allocated/Applied MOH refers to the amount of manufacturing overhead assigned to a specific job in business. It is calculated by multiplying the predetermined overhead rate by the actual amount of the allocation base used by the job.
Step-by-step explanation:
In business, when computing indirect costs allocated to a job, we use the concept of Allocated/Applied MOH (Manufacturing Overhead). This refers to the amount of manufacturing overhead that is assigned to a specific job or product. It is calculated by multiplying the pre-determined overhead rate by the actual amount of the allocation base used by the job.
For example, if the pre-determined overhead rate is $10 per direct labor hour and the job used 5 direct labor hours, then the Allocated/Applied MOH would be $50 (5 hours x $10/hour).
It is important to accurately allocate indirect costs to jobs in order to determine the true cost of producing a product or providing a service.