Question

If the activity-based rate is $119.54 per pound, and 3 products are produced using 56, 91 and 109 pounds, respectively. How much is allocated for MOH to the products in total?

Answer 1

To allocate the amount for MOH to the products in total, multiply the activity-based rate per pound by the number of pounds for each product.

Step-by-step explanation:

To calculate the amount allocated for MOH to the products in total, we multiply the activity-based rate per pound ($119.54) by the number of pounds for each product.

For the first product (56 pounds), the allocated amount for MOH is $6,691.44.

For the second product (91 pounds), the allocated amount for MOH is $10,873.14.

For the third product (109 pounds), the allocated amount for MOH is $13,036.86.

The total allocated amount for MOH to the products is $30,601.44.