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The Botosan Factory has determined that its budgeted factory overhead budget for the year is $586,245...

The Botosan Factory has determined that its budgeted factory overhead budget for the year is $586,245 and budgeted direct labor hours are 313,500. If the actual direct labor hours for the period are 285,300, how much overhead would be allocated to the period?

a.$549,516

b.$533,511

c.$453,484

d.$645,548

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Answer #1

Answer : B) $533,511

Overheads Allocated to That period = (Estimated Overheads / Estimated Base)* Actual Base

Overheads allocated = ($586,245/313,500)*285300 = $533,511

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