Question

fill in the blank question
estimated manufacturing overhead $450,000
estimated direct labor hours 50,000
actual manufacturing overhead $405,000
actual direct labor hours 180,000
based on this information, the amount of overhead allocated to a job that used 300 direct labor hours is $ (enter your answer as a whole number)

Explanation:

Step1: Calculate predetermined OH rate

$\text{Predetermined rate} = \frac{\text{Estimated manufacturing overhead}}{\text{Estimated direct labor hours}} = \frac{450000}{150000} = 3$

Step2: Allocate overhead to the job

$\text{Allocated overhead} = \text{Predetermined rate} \times \text{Job direct labor hours} = 3 \times 300$

Answer:

900