Green Company expected to incur $ 10 comma 500 in manufacturing overhead costs and use 5 comma 000 machine hours for the year. Actual manufacturing overhead was $ 9 comma 800 and the company used 5 comma 300 machine hours. 9. Calculate the predetermined overhead allocation rate using machine hours as the allocation base. 10. How much manufacturing overhead was allocated during the year?

Estimated manufacturing overhead rate= 10,500/5,000= $2.1 per machine hour

Allocated MOH= $11,130

Explanation:

Giving the following information:

Estimated overhead costs= $10,500

Estimated machine-hours= 5,000

Actual machine-hours= 5,300 machine hours.

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= 10,500/5,000= $2.1 per machine hour

Now, we can allocate overhead based on actual machine-hours:

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

Allocated MOH= 2.1*5,300= $11,130

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