Bag ladies, inc. manufactures two kinds of bagslong dashtotes and satchels. the company allocates manufacturing overhead using a single plantwide rate with direct labor cost as the allocation base. estimated overhead costs for the year are $ 25 comma 000. additional estimated information is given below. totes satchels direct materials cost per unit $ 31 $ 44 direct labor cost per unit $ 50 $ 65 number of units 510 350 calculate the amount of overhead to be allocated to totes. (round any percentages to two decimal places and your final answer to the nearest dollar.) a. $ 343 b. $ 500 c. $ 11 comma 787 d. $ 13 comma 212

Allocated MOH Totes= $13,209

Explanation:

Giving the following information:

The company allocates manufacturing overhead using a single plantwide rate with direct labor cost as the allocation base. The estimated overhead costs for the year are $ 25,000.

Direct labor cost per unit:

Totes= $ 50

Satchels= $ 65

Number of units:

Totes= 510

Satchels= 350

Total= 860

Total direct labor cost= 50*510 + 65*350= $48,250

Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Estimated manufacturing overhead rate= 25,000/48,250= $0.518 per labor dollar

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

Allocated MOH Totes= 0.518* (50*510)= $13,209

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