Sybil, Inc uses a predetermined overhead allocation rate to allocate manufacturing overhead costs to jobs
The company recently completed Job 300X. This job used 11 machine hours and 5 direct labor hours. The predetermined overhead allocation rate is calculated to be $43 per machine hour. What is the amount of manufacturing overhead allocated to Job 300X using machine hours as the allocation base?
A) $473
B) $215
C) $688
D) $258
A .A) Allocated manufacturing overhead cost = Predetermined overhead allocation rate x Actual quantity of the allocation base used by each job
Allocated manufacturing overhead cost = $43 x 11 machine hours = $473.
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