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Estimated manufacturing overhead $450,000
Estimated direct labor hours 150,000
Actual direct labor hours 180,000
Based on this information, the amount of overhead allocated to a job that used 300 direct labor hours is ________$
(Enter your answer as a whole number.)

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Answer:

$900

Explanation:

The computation of the amount of the overhead allocated is shown below:

But before that the predetermined overhead rate is

As we know that

Predetermine overhead rate is

= Estimated manufacturing overhead ÷ estimated direct labor hours

= $450,000 ÷ $150,000

= $3

Now the overhead allocated is

= 300 direct labor hours × $3

= $900

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