Answer:
Results are below.
Explanation:
<u>First, we need to calculate the allocation rate:</u>
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Machine setup= 19,608 / 38= $516 per set up
Machining= 123,650 / 4,945= $25 per machine hour
Packing= 33,530 / 479= $70 per order
<u>Now, we can allocate to each product:</u>
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Product BC113:
Machine setup= 516*21= $10,836
Machining= 25*1,122= $28,050
Packing= 70*192= $13,440
Total= $52,326
Product AD908:
Machine setup= 516*17= $8,772
Machining= 25*3,824= $95,600
Packing= 70*287= $20,090
Total= $124,462
<u>Finally, the unitary cost:</u>
Product BC113= 52,326 / 2,200= $28,79
Product AD908= 124,462 / 1,430= $87.04
