Total Allocated Manufacturing Overhead (MOH) for Lilac Fragrance

What is the total allocated MOH for the lilac fragrance?

1) $117500.00

2) $87978.00

3) $126636.72

4) $101050.00

Answer:

The total allocated MOH for the lilac fragrance is $101050.00.

Reflecting on the total allocated Manufacturing Overhead (MOH) for the lilac fragrance, it is essential to understand how this amount is calculated. In this scenario, we are looking at the costs associated with producing the lilac fragrance at Elizabeth, Inc.

In order to determine the total allocated MOH for the lilac fragrance, we need to consider the direct labor costs for this specific fragrance. The direct labor costs include the bottler wages and assembly line wages allocated to the production of the lilac fragrance.

By adding the bottler wages and assembly line wages for the lilac fragrance, we calculate the total direct labor cost, which is $117500.00 in this case. To find the total allocated MOH, we then multiply this total direct labor cost by 86%.

After multiplying $117500.00 by 86%, we arrive at the total allocated MOH for the lilac fragrance, which amounts to $101050.00. This figure provides us with an accurate picture of the company's budget and helps in making informed decisions regarding the suppliers and production costs.