If the budgeted factory overhead cost is $460,000, the budgeted direct labor hours are 80,000, and the actual direct labor hours are 6,700 for the month, the amount of factory overhead to be allocated is $38,525 (if the allocation is based on direct labor hours).

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Quizplus · Accepted Answer

The amount of factory overhead to be allocated is calculated by multiplying the budgeted factory overhead cost by the actual direct labor hours and dividing by the budgeted direct labor hours. In this case, the amount of factory overhead to be allocated is $460,000 * 6,700 / 80,000 = $38,525.

If the Budgeted Factory Overhead Cost Is $460,000, the Budgeted