MC Qu. 111 A company has an overhead application ... A company has an overhead application rate of 121% of direct labor costs. How much overhead would be allocated to a job if it required total labor costing $27,000?

Allocated MOH = $32,670

Explanation:

Giving the following information:

A company has an overhead application rate of 121% of direct labor costs. A job required total labor costing $27,000

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

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

Allocated MOH = 1.21*27,000 = $32,670