Celebration Company uses a single plant-wide rate to allocate overhead and uses direct labor hours as...

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Celebration Company uses a single plant-wide rate to allocate overhead and uses direct labor hours as its allocation base. At the beginning of the year, Celebration company estimates overhead costs of $100,000. The company estimates that it will incur 25,000 direct labor hours to make all of its products for the year. To make product A, Celebration Company incurred 10,000 direct labor hours. Using the single plant-wide overhead allocation method, compute the total amount of overhead that Celebration Company would allocate to product A based on the information above. Celebration Company uses a single plant-wide rate to allocate overhead and uses direct labor hours as its allocation base. At the beginning of the year, Celebration company estimates overhead costs of $100,000. The company estimates that it will incur 25,000 direct labor hours to make all of its products for the year. To make product A, Celebration Company incurred 10,000 direct labor hours. Using the single plant-wide overhead allocation method, compute the total amount of overhead that Celebration Company would allocate to product A based on the information above.

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