Answer:
Results are below.
Explanation:
a)
<u>To calculate the predetermined manufacturing overhead rate we need to use the following formula:</u>
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= 313,020 / 58,000
Predetermined manufacturing overhead rate= $5.4 per machine hour
<u>Now, we can allocate overhead:</u>
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Standard= 5.4*26,500= $143,100
Deluxe= 5.4*31,500= $170,100
b)
<u>First, we need to calculate the allocation rates:</u>
Material handling= 183,750 / 1,550= $118.55 per material moves
Setup= 179,180 / 660= $271.48 per setup
<u>Now, we can allocate overhead:</u>
Standard= 118.55*625 + 271.48*85= $97,169.55
Deluxe= 118.55*925 + 271.48*575= $265,759.75