MNO Corporation uses a job-order costing system with a predetermined overhead rate based on direct labor-hours. The company based its predetermined overhead rate for the current year on the following data: Total estimated direct labor-hours 50,000 Total estimated fixed manufacturing overhead cost $285,000 Estimated variable manufacturing overhead per direct labor-hour $3.80 Recently, Job P123 was completed with the following characteristics: Total actual direct labor-hours 20 Direct materials $710 Direct labor cost $500 The amount of overhead applied to Job P123 is closest to

Allocated MOH= $174

Explanation:

Giving the following information:

Total estimated direct labor-hours 50,000 Total estimated fixed manufacturing overhead cost $285,000 Estimated variable manufacturing overhead per direct labor-hour $3.80

Job P123:

Total actual direct labor-hours 20

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= (285,000/50,000) + 3.8

Estimated manufacturing overhead rate= $8.7 per direct labor hour.

Now, we can allocate overhead to Job P123:

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

Allocated MOH= 8.7*20= $174

if you use only 25 for your entertainment and only 200 for the groceries that you really need and take out the 50 per month for the computer then that should be enough

c

explanation: