Answer:
Labor-related= $9 per direct labor hour
Purchase orders= $2 per order
Product testing= $10 per number of test
Template etching= $25 per template
General factory= $5 per machine hour
Explanation:
Giving the following information:
Activity - Cost Pool
Labor-related - Direct labor-hours: $18,000 - 2,000 DLHs
Purchase orders - Number of orders: $1,050 - 525 orders
Product testing - Number of tests: $3,500 - 350 tests
Template etching - Number of templates: $700 28 templates
General factory - Machine-hours: $50,000 - 10,000 MHs
<u>For each activity, we need to calculate the estimated overhead rate to then allocate to each Job or product.</u>
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
Labor-related= 18,000/2,000= $9 per direct labor hour
Purchase orders= 1,050/525= $2 per order
Product testing= 3,500/350= $10 per number of test
Template etching= 700/28= $25 per template
General factory= 50,000/10,000= $5 per machine hour