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based on the following information, calculate the manufacturing overhead applied to job 101. estimated manufacturing overhead cost $300,000 estimated direct labor cost $150,000 actual direct labor cost for job 101 $80,000 multiple choice question. $40,000 $100,000 $160,000

Sagot :

160,000 is the manufacturing overhead applied to job 101.

To calculate manufacturing overhead,

The expenditures involved in running a firm that aren't related to developing or manufacturing a good or service are known as overhead costs, often known as overhead or operating expenses.

They are the costs a business must pay to remain open, regardless of how successful it is.

Estimated Manufacturing overhead cost/Estimated Direct Labor Cost X

Actual direct Labor Cost

300,000/150,000X80,000

= 160,000

The complete cost of manufacturing a product, including overhead, can be calculated using the activity-based costing (ABC) approach. It is derived by dividing the overall cost of the cost drive by the cost pool.

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