Answer:
Results are below.
Explanation:
<u>First, we need to calculate the activity rate for each activity:</u>
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Machining= 312,000/80,000= $3.9 per machine hour
Designing costs= 73,600/8,000= $9.2 per design hour
Setup costs= 71,600/500= $143.2 per batch
<u>Now, we can allocate overhead to each product:</u>
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
<u>Product A:</u>
Machining= 3.9*30,000= 117,000
Designing costs= 9.2*3,200= 29,440
Setup costs= 143.2*50= 7,160
Total overhead= $153,600
<u>Product B:</u>
Machining= 3.9*40,000= 156,000
Designing costs= 9.2*1,800= 16,560
Setup costs= 143.2*175= 25,060
Total overhead= $197,620
<u>Product C:</u>
Machining= 3.9*10,000= 39,000
Designing costs= 9.2*3,000= 27,600
Setup costs= 143.2*275= 39,380
Total overhead= $105,980
