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22 December, 10:12

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?

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  1. 22 December, 10:57
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    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
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