URGENT

T Manufacturing uses standard costing. It allocates manufacturing overhead (both variable and fixed) to products on the basis of standard direct manufacturing labor-hours (DMLH).

More info

Thompson develops its manufacturing overhead rate from the current annual budget. The manufacturing overhead budget for 2020 is based on budgeted output of 660,000 units, requiring 3,300,000 DMLH. The company is able to schedule production uniformly thorughout the year. A total of 68,000 output units requiring 322,000 DMLH was produced during August 2020. Manufacturing overhead (MOH) costs incurred for August amounted to $376,700.

The actual costs, compared with the annual budget and 1/12 of the annual budget, are as follows:

Data table

Annual Manufacturing Overhead Budget 2020
		Per	Per DMLH	Monthly	Actual MOH
	Total	Output	Input	MOH Budget	Costs for
	Amount	Unit	Unit	August 2020	August 2020
Variable MOH
Indirect manufacturing labor	$990,000	$1.50	$0.30	$82,500	$82,500
Supplies	660,000	1.00	0.20	55,000	121,000
Fixed MOH
Supervision	495,000	0.75	0.15	41,250	41,000
Utilities	462,000	0.70	0.14	38,500	63,000
Depreciation	726,000	1.10	0.22	60,500	69,200
Total	$3,333,000	$5.05	$1.01	$277,750	$376,700

1. Calculate total manufacturing overhead costs allocated.

Begin by computing the budgeted hours per unit. Determine the formula, then compute the amount.

			=	Budgeted hours per unit
			=