Answer:
Instructions are below.
Explanation:
Giving the following information:
Activity Allocation Rate Mid–Fi Hi–Fi
Setup $1,700/per setup 39 setups 39 setups
Inspections $ 400/per hour 45 hours 15 hours
Machine maintenance $ 10/per machine 1,900 machine 1,200 machine
<u>First, we need to allocate indirect costs using the following formula:</u>
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
<u>Mid-Fi:</u>
Allocated MOH= 1,700*39 + 400*45 + 10*1,900= $103,300
<u>Hi-Fi:</u>
Allocated MOH= 1,700*39 + 400*15 + 10*1,200= $84,300
<u>Now, we can calculate the unitary cost.</u>
<u />
<u>Mid-Fi:</u>
Unitary indirect costs= 103,300/200= $516.5
Unitary cost= 400 + 400 + 516.5= $1,316.5
<u>Hi-Fi:</u>
Unitary indirect cost= 84,300/250= $337.2
Unitary cost= 1,300 + 300 + 337.2= $1,937.2