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Cobalt Corp. has a Predetermined Overhead Application Rate of $4.50 per direct labor dollar incurred. Estimated Manufacturing Overhead Cost is $545. If the actual number of hours worked is 10 and the wage rate is $15, what is the Manufacturing Overhead Cost applied to jobs this period

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Answer:

Allocated MOH= $675

Explanation:

Giving the following information:

Overhead Application Rate of $4.50 per direct labor dollar incurred.

Direct labor dolalrs= 10*15= $150

To calculate the manufacturing overhead applied to the job, we need to use the following formula:

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

Allocated MOH=  4.5*150

Allocated MOH= $675

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