Answer:
Results are below.
Explanation:
<u>First, we need to calculate the plantwide predetermine manufacturing overhead rate:</u>
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
total estimated overhead costs for the period= (625,000 + 900,000 + 105,000 + 175,000 + 300,000 + 75,000)
total estimated overhead costs for the period= $2,180,000
Predetermined manufacturing overhead rate= 2,180,000 / 125,000
Predetermined manufacturing overhead rate= $17.44 per direct labor hour
<u>Now, we can allocate overhead to each product line:</u>
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
<u>Deluxe:</u>
Allocated MOH= 17.44*2,500
Allocated MOH= $43,600
<u>Basic:</u>
Allocated MOH= 17.44*6,000
Allocated MOH= $104,640
