Sybil,Inc.uses a predetermined overhead allocation rate to allocate manufacturing overhead costs to jobs.The company recently completed Job 300X.This job used 10 machine hours and 3 direct labor hours.The predetermined overhead allocation rate is calculated to be $45 per machine hour.What is the amount of manufacturing overhead allocated to Job 300X using machine hours as the allocation base?

Question

Quizplus · Accepted Answer

A) Allocated manufacturing overhead cost = Predetermined overhead allocation rate × Actual quantity of the allocation base used by each job
Allocated manufacturing overhead cost = $45 × 10 machine hours = $450.

Sybil,IncUses a Predetermined Overhead Allocation Rate to Allocate Manufacturing Overhead