Answer:
Instructions are listed below.
Explanation:
Giving the following information:
Rasmussen Corporation expects to incur indirect overhead costs of $80,000 per month and direct manufacturing costs of $12 per unit. The expected production activity for the first four months of 2017 is as follows: January February March April Estimated production in units 6,000 7,000 3,000 4,000
Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
January:
Estimated manufacturing overhead rate= (80,000/6,000)+12= 25.33 per unit
February:
Estimated manufacturing overhead rate= $23.43
March:
Estimated manufacturing overhead rate= 38.67
April:
Estimated manufacturing overhead rate= $32
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
January= 6,000*25.33= $151,980
February= 7,000*23.43= $164,010
March= 3,000*38.67= 116,010
April= 4,000*32= $128,000
