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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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