Ask Question
29 October, 13:04

Levitts Corporation allocates overhead using an approach based upon direct labor-hours. Budgeted factory overhead was $150,000, budgeted direct labor-hours were 30,000. Actual factory overhead was $164,500, and actual direct labor-hours were 32,500. What amount of manufacturing overhead should the manager allocate to the job?

+5
Answers (1)
  1. 29 October, 13:26
    0
    Allocated overhead = $162,500

    Explanation:

    Giving the following information:

    Levitts Corporation allocates overhead using an approach based upon direct labor-hours.

    Budgeted factory overhead was $150,000, budgeted direct labor-hours were 30,000. Actual factory overhead was $164,500, and actual direct labor-hours were 32,500.

    First, we need to calculate the manufacturing overhead rate:

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

    manufacturing overhead rate = 150000 / 30000 = $5

    Allocated overhead = manufacturing overhead rate * actual hours = 5 * 32500 = $162,500
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Levitts Corporation allocates overhead using an approach based upon direct labor-hours. Budgeted factory overhead was $150,000, budgeted ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers