Answer:
Allocated MOH= $944
Step-by-step explanation:
Giving the following information:
Estimated overhead= $237,000
Variable manufacturing overhead= $3.90 per machine-hour
Estimated machine-hours= 30,000 machine-hours.
Job A496:
Total machine-hours 80
First, we need to calculate the predetermined overhead rate, using the following formula:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= (237,000/30,000) + 3.9
Predetermined manufacturing overhead rate= $11.8 per machine-hour
Now, we can allocate overhead:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Allocated MOH= 11.8*80
Allocated MOH= $944