Question

Job 148 requires $12,000 of direct materials, $6,700 of direct labor, 550 direct labor hours, and 270 machine hours. It also requires 9 hours of inspection at $40 per hour. Manufacturing overhead is computed at $28 per direct labor hour used and $42 per machine hour used. The total amount of overhead allocated is: a. $34,100. b. $26,740. c. $45,440. d. $15,400.

Answer 1

b. $26,740

Step-by-step explanation:

The computation of the total amount of overhead allocated is shown below:

overhead allocated is

= (actual direct labor hour × overhead rate per direct labor hour) + (Actual machine hour × overhead rate per machine hour)

= (550 × 28) + (270 × 42]

= $15,400 + $11,340

= $26,740

hence, the total amount of overhead allocated is $26,740