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MC Qu. 111 A company has an overhead application... A company has an overhead application rate of 121% of direct labor costs. How much overhead would be allocated to a job if it required total labor costing $27,000?

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Answer:

Allocated MOH= $32,670

Explanation:

Giving the following information:

A company has an overhead application rate of 121% of direct labor costs. A job required total labor costing $27,000

To allocate overhead, we need to use the following formula:

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

Allocated MOH= 1.21*27,000= $32,670

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