Answer:
total estimated overhead costs for the period= $515,095.2
Explanation:
<u>First, we need to calculate the allocated overhead:</u>
Under/over applied overhead= real overhead - allocated overhead
20,440 = 506,920 - allocated overhead
allocated overhead= $486,480
<u>Now, we can determine the predetermined overhead rate:</u>
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
486,480= Estimated manufacturing overhead rate*20,400
Estimated manufacturing overhead rate= 486,480/20,400
Estimated manufacturing overhead rate= $23.847 per direct labor hour
<u>Finally, the estimated overhead for the period:</u>
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
23.847= total estimated overhead costs for the period/21,600
total estimated overhead costs for the period= 21,600*23.847
total estimated overhead costs for the period= $515,095.2
