Answer:
Instructions are listed below.
Explanation:
Giving the following information:
Basic production information follows:
Harbour has a monthly overhead of $184,260
The number of machine-hours:
Home: 1,600
Work: 1,200
Total: 2,800
To calculate the allocated overhead, first, we need to calculate the overhead rate:
Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Estimated manufacturing overhead rate= 184,260/ 2,800= $65.81 per machine hour
Now we can allocate the overhead using the following formula:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Work:
Allocated MOH= 65.81*1,600= $105,296
Home:
Allocated MOH= 65.81*1,200= $78,972
