Question

The company allocated manufacturing overhead of using a predetermined overhead rate of per machine hour. The total actual manufacturing overhead costs are _________.

Answer 1

Instructions are below.

Step-by-step explanation:

Giving the following information:

We weren't provided with enough information to answer, but, I can provide with an example and formulas to guide an answer.

For example:

Estimated overhead for the period= $1,500,000

Estimated machine-hours= 55,000

Actual machine-hours= 62,000

First, we need to calculate the predetermined overhead rate:

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

Predetermined manufacturing overhead rate= 1,500,000/55,000

Predetermined manufacturing overhead rate= $27.27

Now, we can allocate overhead based on actual hours:

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

Allocated MOH= 27.27*62,000

Allocated MOH= $1,690,740