Answer:
Instructions are below.
Explanation:
<u>1)</u>
Order Filling, $136,040
Orders (Order Filling)
Product D7 3,040
Product U1 760
<u>To calculate the predetermined overhead rate, we need to use the following formula:</u>
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Order Filling= 136,040/3,800
Order Filling= $35.8 per order
<u>2)</u>
Overhead costs:
Machining, $81,600
Order Filling, $161,500
Activity data appear below:
MHs (Machining) Orders (Order Filling)
Product D7 13,200 4,000
Product U1 26,800 1,000
<u>First, we need to calculate the activity rate for each activity:</u>
Machining= 81,600/40,000= $2.04 per machine hour
Order Filling= 161,500/5,000= $32.3 per order
<u>Now, we can allocate overhead to product U1:</u>
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Product U1= 2.04*26,800 + 32.3*1,000= $86,972
<u>3)</u>
Wall Mirrors Specialty Windows
Total expected units produced 7,700 1,450
Expected direct labor-hours per unit 14 7
The total materials handling cost for the year is expected to be $17,153.10.
<u>Total direct labor hours, and predetermined overhead rate:</u>
Total direct labor hours= 14*7,700 + 7*1,450= 117,950
Material Handling activity rate= 17,153.1/117,950= $0.145 per direct labor hour
<u>Now, we allocate overhead:</u>
Wall Mirrors= 0.15*107,800= $16,170
