Answer:
Allocated overhead= $37,260
Explanation:
Giving the following information:
Total
Estimated total machine-hours (MHs) 10,000
Estimated total fixed manufacturing overhead cost $38,000
Estimated variable manufacturing overhead cost per machine-hour $4.3
<u>First, we need to calculate the plantwide predetermined overhead rate:</u>
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= (38,000/10,000) + 4.3
Predetermined manufacturing overhead rate= $8.1 per machine-hour
<u>Now, we can allocate overhead to Job G:</u>
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Job G
Casting machine-hours 1,600
Customizing machine-hours 3,000
Allocated overhead= 8.1* (1,600 + 3,000)= $37,260
