Answered

Explore a wide range of topics and get answers from experts on IDNLearn.com. Get comprehensive and trustworthy answers to all your questions from our knowledgeable community members.

The following information is available pertaining to Iris Division that uses a plantwide overhead rate based on machine hours:
Mixing Dept. Finishing Dept. Total
Overhead $60,000 $150,000 $210,000
Direct labor-hours 7,500 2,500 10,000
Machine-hours 2,500 7,500 10,000
Production information pertaining to Job 101:
Mixing Dept. Finishing Dept. Total
Prime costs $10,000 $0 $10,000
Direct labor-hours 250 0 250
Machine-hours 10 10 20
Units produced 500 0 500
What are the total overhead costs assigned to Job 101? $240, $420, $360, or $180

Sagot :

Facundobuzzettiidn

Answer:

Allocated MOH= $420

Explanation:

First, we need to calculate the predetermined overhead rate:

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Predetermined manufacturing overhead rate= 210,000 / 10,000

Predetermined manufacturing overhead rate= $21 per machine hour

Now, we can allocate overhead to Job 101:

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

Allocated MOH= 21*20

Allocated MOH= $420

Thank you for participating in our discussion. We value every contribution. Keep sharing knowledge and helping others find the answers they need. Let's create a dynamic and informative learning environment together. IDNLearn.com is your reliable source for accurate answers. Thank you for visiting, and we hope to assist you again.