Answer:
Instructions are listed below.
Explanation:
Giving the following information:
790,000 units are expected to be produced taking 0.75 machine hours each.
<u>We weren't provided with enough information to solve the requirement. But, I will give the formulas necessary to guide an answer and a small example.</u>
<u>First, we need to calculate the total amount of machine-hours required:</u>
Total machine hours= 790,000*0.75= 592,500 hours.
Let us suppose that the estimated manufacturing overhead is $850,000.
To calculate the estimated manufacturing overhead rate we need to use the following formula:
Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Estimated manufacturing overhead rate= 850,000/592,500= $1.44 per machine hour
Now, we can allocate overhead:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Allocated MOH= 1.44*0.75 hours= $1.08 per unit
