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18 June, 23:59

C Corporation uses direct labor-hours in its predetermined overhead rate. At the beginning of the year, the estimated direct labor-hours were 21,920 hours and the total estimated manufacturing overhead was $526,080. At the end of the year, actual direct labor-hours for the year were 21,800 hours and the actual manufacturing overhead for the year was $526,080. Overhead at the end of the year was: (Round your intermediate calculations to 2 decimal places.)

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  1. 19 June, 00:27
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    Allocated MOH = $523,200

    Explanation:

    Giving the following information:

    Estimated:

    estimated direct labor-hours = 21,920 hours

    total estimated manufacturing overhead = $526,080

    The actual direct labor-hours for the year were 21,800 hours.

    To allocate the overhead, first, we need to calculate the predetermined overhead rate:

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

    Estimated manufacturing overhead rate=526,080/21,920 = $24 per direct labor hour

    Now, we can allocate the overhead:

    Allocated MOH = Estimated manufacturing overhead rate * Actual amount of allocation base = 24*21,800 = $523,200
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