Answer:
Results are below.
Explanation:
a)
<u>First, we need to calculate the predetermined overhead rate:</u>
<u></u>
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= 2,325,000 / 20,000
Predetermined manufacturing overhead rate= $116.25 per direct labor hour
<u>Now, we can allocate overhead:</u>
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Allocated MOH= 116.25*375
Allocated MOH= $43,493.75
<u>b)</u>
Total cost= 5,000 + 7,500 + 43,493.75
Total cost= $55,993.75
<u>c)</u>
Selling price= 55,993.75*1.3
Selling price= $72,791.88
<u>d)</u>
<u>First, we need to calculate the activities rate:</u>
<u></u>
Maintenance= 210,000 / 10,000= $21 per machine hour
Materials handling= 90,000 / 2,000= $45 per material move
Setups= 75,000 / 100= $750 per setup
Inspection= 150,000 / 4,000= $37.5 per inspection
Now, we can allocate overhead:
Maintenance= 21*150= 3,150
Materials handling= 45*4= 180
Setups= 750*2= 1,500
Inspection= 37.5*3= 112.5
Total allocated costs= $4,942.5
