Ask Question
19 July, 11:18

Using the following accounts and an overhead rate of 80% of direct labor cost, determine the amount of applied overhead. Work in Process Inventory Beginning WIP 18,300 Direct Materials54,900 Direct Labor

+5
Answers (1)
  1. 19 July, 12:20
    0
    Allocated MOH = Estimated manufacturing overhead rate * Actual amount of allocation base

    Explanation:

    Giving the following information:

    Overhead is applied base on an estimated overhead rate of 80% of direct labor cost.

    We weren't provided with enough information to calculate the allocated overhead. But, I will give a numerical example as well as the formula:

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

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

    For example:

    Direct labor = $50,000

    Allocated overhead = 0.8*50,000 = $40,000
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Using the following accounts and an overhead rate of 80% of direct labor cost, determine the amount of applied overhead. Work in Process ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers