Question

Manton Manufacturing applies manufacturing overhead costs to products at a budgeted indirectminuscost rate of $ 90 per direct manufacturing laborminushour. A retail outlet has requested a bid on a special order of the Toy Bear product. Estimates for this order​ include: Direct materials of $ 75 comma 000​; 680 direct manufacturing laborminushours at $ 30 per​ hour; and a 40​% markup rate on total manufacturing costs. Manufacturing overhead cost estimates for this​ special-order total​ ________.

Answer 1

Allocated MOH= $61,200

Step-by-step explanation:

Giving the following information:

Predetermined overhead rate= $90 per direct labor-hour.

Estimates for this order​ include:

direct labor-hours= 680

To allocate overhead, we need to use the following formula:

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

Allocated MOH= 90*680= $61,200