Maple Company uses a job costing system. Maple Company's schedule of cost of goods manufactured showed the following amounts for the month ended August 31. Cost of direct materials used $ 42 comma 600$42,600 Cost of goods manufactured 124 comma 200124,200 Cost of direct labor ($3030 per hour) 76 comma 20076,200 Work in process inventory, August 1 15 comma 50015,500 Manufacturing overhead cost is allocated at the rate of $ 17$17 per direct labor hour. What is the amount of allocated manufacturing overhead costs for August?

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Business

Conner

1 February, 11:24

Maple Company uses a job costing system. Maple Company's schedule of cost of goods manufactured showed the following amounts for the month ended August 31. Cost of direct materials used $ 42 comma 600$42,600 Cost of goods manufactured 124 comma 200124,200 Cost of direct labor ($3030 per hour) 76 comma 20076,200 Work in process inventory, August 1 15 comma 50015,500 Manufacturing overhead cost is allocated at the rate of $ 17$17 per direct labor hour. What is the amount of allocated manufacturing overhead costs for August?

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Geovanni Mcclure · Answer 1

Allocated overhead = $43,180

Explanation:

Giving the following information:

Cost of direct materials used $42,600

Cost of goods manufactured $124,200

Cost of direct labor ($30 per hour) = $76,200

Manufacturing overhead cost is allocated at the rate of $17 per direct labor hour.

Allocated overhead = predetermined overhead rate * actual allocation base

Allocated overhead = 17 * (76200/30) = $43,180