Answer:
Results are below.
Explanation:
First, we need to calculate the activity rates. We weren't provided with the estimated costs for each activity. <u>I will assume some costs and formulas to guide an answer.</u>
Set up costs= $100,000
Assembly (direct labor)= $1,200,000
Inspection= $250,000
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Set up= 100,000 / 1,000= $100 per set up
Assembly= 1,200,000 / 70,000= $17.14 per direct labor hour
Inspection= 250,000 / 1,200= $208.33 per inspection
<u>Now, we can allocate costs to each product line:</u>
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Car:
Set up= 100*200= $20,000
Assembly= 17.14*40,000= $685,600
Inspection= 208.33*100= $20,833
Truck:
Set up= 100*800= $80,000
Assembly= 17.14*30,000= $514,200
Inspection= 208.33*1,100= $229,163
