Answer:
Results are below.
Explanation:
<u>First, we need to calculate the activity rates for each cost pool:</u>
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Activity 1= 103,850 / (2,500 + 5,250)= $13.4 per unit of activity
Activity 2= 106,000 / (4,500 + 5,500)= $10.6 per unit of activity
Activity 3= 95,120 / (3,000 + 2,800)= $16.4 per unit of activity
<u>Now, we can allocate overhead to Standard:</u>
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Standard:
Activity 1= 13.4*2,500= $33,500
Activity 2= 10.6*4,500= $47,700
Activity 3= 16.4*3,000= $49,200
Total allocated costs= $130,400
<u>Finally, the unitary cost:</u>
Unitary cost= 130,400 / 37,775
Unitary cost= $3.45
