Response:
Allocated MOH= $274,320
Clarification:
Providing the following details:
The budgeted factory overhead was $266,400, while the expected machine-hours amounted to 18,500. The actual machine-hours totaled 19,050.
Initially, we must determine the estimated rate for manufacturing overhead. We can then allocate the overhead accordingly.
To find the estimated overhead rate for manufacturing, we should employ the following equation:
Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Estimated manufacturing overhead rate= 266,400/18,500= $14.4 per machine-hour.
Now we can proceed to allocate the overhead:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Allocated MOH= 14.4*19,050= $274,320