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Based on this information, the overhead applied to job ABC using multiple predetermined overhead rates is $82.80.

What is overhead?

  • In the world of business, a continuing cost of running a company is referred to as overhead or overhead charge.
  • Unlike operating expenses like raw material and labor, overheads cannot easily be linked to or recognized with any one revenue unit.
  • Consider the cost as being divided into two parts: the fixed overhead (your phone plan's monthly cost) and the variable overhead (fees for data overage and/or overseas travel).
  • It is crucial for budgeting as well as for figuring out how much a business must charge for its goods or services in order to turn a profit.

Calculation of overhead applied:

Given,

Predetermined overhead rate per direct labor hour

Company = $2.10

Dept. A = $2.40

Dept B. = $ 1.80

Direct labor hours hours worked on Job ABC:

Company = 40

Dept A = 18

Dept B = 22

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

Dept A= 2.4 x 18 = $43.2

Dept B= 1.8 x 22 = $ 39.6

overhead applied = $82.80

Hence, the overhead applied to job abc using multiple predetermined overhead rates is $82.80.

Learn more about overhead here:

https://brainly.com/question/19130334

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