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Midwest Corporation has provided the following data concerning manufacturing overhead for 2020: Estimated manufacturing overhead for the year$30,000 Estimated direct labor hours for the year 2,000 Two jobs were worked on during the year: Job A-101 and Job A-102. The number of direct labor-hours spent on Job A-101 and Job A-102 were 1,200 and 1,000, respectively. The actual manufacturing overhead was $37,000. What was the amount of manufacturing overhead applied to Job A-101

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Answer:

$18,000

Explanation:

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

But before that first determine the overhead rate which is

= $30,000 ÷ 2,000

= $15

Now the amount of manufacturing overhead applied for Job A-101 is

= $1,200 × $15

= $18,000

Hence, the amount of applied manufacturing overhead is $18,000

abiolataiwo2015

The amount of manufacturing overhead applied to Job A-101 is $18,000.

First step is to calculate the Predetermined MOH

Predetermined MOH= $30,000 ÷ 2,000

Predetermined MOH= $15

Second step is to calculate the manufacturing overhead applied  

Job A-101  Manufacturing overhead= $1,200 × $15

Job A-101  Manufacturing overhead= $18,000

Inconclusion the amount of manufacturing overhead applied to Job A-101 is $18,000.

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