Answer:
The Corporation's manufacturing overhead cost for the year was $543,840
Explanation:
Giving the following information:
Last year, the Corporation worked 60,500 actual direct labor-hours and incurred $532,000 of actual manufacturing overhead cost.
The Corporation had estimated that it would work 61,800 direct labor-hours.
First, we need to calculate the estimated manufacturing overhead rate we need to use the following formula:
Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Estimated manufacturing overhead rate= 532,000/60,500= $8.80 per direct labor hour.
Now, we can allocate overhead based on actual direct labor hours:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Allocated MOH= 8.8*61,800= $543,840
