Answer:
Results are below.
Explanation:
<u>First, we need to calculate the allocation rates:</u>
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Production setups= (73,000 / 30)= $2,433.33 per setup
Material handling= (49,000 / 91)= $538.46 per number of part
Packaging costs= (246,000 / 156,000)= $1.58 per unit
<u>Now, we need to allocate costs to Product XY:</u>
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Production setups= 2,433.33*18= 43,799.94
Material handling= 538.46*23= 12,384.58
Packaging costs= 1.58*60,000= $94,800
Total allocated costs= $150,984.52
<u>Finally, per unit basis:</u>
Unitary cost= 150,984.52 /60,000= $0.27
