Answer:
Instructions are listed below.
Explanation:
Giving the following information:
The predetermined overhead rate in the Assembly Department is based on machine hours (MHs) and it is based on direct labor-hours (DLHs) in the Packaging Department.
Assembly Packaging
Direct labor-hours 5,200 62,000
Machine-hours 68, 400 11,900
Total fixed manufacturing overhead cost $390,000 $419,000
Variable manufacturing overhead per DLH $ 3.75
Variable manufacturing overhead per MH $ 3.00
Assembly:
Overhead= fixed overhead + variable overhead
Overhead= 390,000 + 68,400*3= $595,200
Packaging:
Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Estimated manufacturing overhead rate= (419,000/62,000) + 3.75= $10.51
