Answer:
Instructions are listed below.
Explanation:
Giving the following information:
Yancey applies its overhead cost to films based on direct labor-dollars.
At the beginning of the year, Yancey made the following estimates:
Direct labor dollars= 8,640,000
Fixed overhead cost= 5,184
Variable overhead cost per direct labor dollar= $0,21
To calculate the predetermined 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
Estimated manufacturing overhead rate= 5,184/8,640,000 + 0.21= 0.0006 + 0.21= $0.2106 per direct labor dollar
Now, we can calculate the allocated overhead for You Can Say That Again:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Allocated MOH= 0.2106*2,592,000= $545,875.2
