Question
Company ARE uses direct labour hours as the allocation base for its manufacturing overhead. In its 2023 budget, ARE estimated that it would have 30,000
Company ARE uses direct labour hours as the allocation base for its manufacturing overhead. In its 2023 budget, ARE estimated that it would have 30,000 direct labour hours, 15,000 machine hours, and manufacturing overhead (MOH) of $535,000. For 2023, the actual direct labour hours were 30,600, actual machine hours were 14,700, and the actual manufacturing overhead was $585,825. During 2023, ARE started and finished Job 456, one of several jobs for the year. Job 456 had 28 direct labour hours.
What was the total dollar amount of manufacturing overhead allocated to Job 456?
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