Manton Manufacturing applies manufacturing overhead costs to products at a budgeted indirectminuscost rate of $ 90 per direct manufacturing laborminushour. A retail outlet has requested a bid on a special order of the Toy Bear product. Estimates for this order include: Direct materials of $ 75 comma 000; 680 direct manufacturing laborminushours at $ 30 per hour; and a 40% markup rate on total manufacturing costs. Manufacturing overhead cost estimates for this special-order total .

Allocated MOH= $61,200

Explanation:

Giving the following information:

Predetermined overhead rate= $90 per direct labor-hour.

Estimates for this order include:

direct labor-hours= 680

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

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

Allocated MOH= 90*680= $61,200

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