Question

Cobalt Corp. has a Predetermined Overhead Application Rate of $4.50 per direct labor dollar incurred. Estimated Manufacturing Overhead Cost is $545. If the actual number of hours worked is 10 and the wage rate is $15, what is the Manufacturing Overhead Cost applied to jobs this period

Answer 1

Allocated MOH= $675

Step-by-step explanation:

Giving the following information:

Overhead Application Rate of $4.50 per direct labor dollar incurred.

Direct labor dolalrs= 10*15= $150

To calculate the manufacturing overhead applied to the job, we need to use the following formula:

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

Allocated MOH= 4.5*150

Allocated MOH= $675