Answer:
Results are below.
Explanation:
<u>First, we need to calculate the number of processing hours:</u>
Processing hours= (0.25*3,000) + (0.1*6,000) + (0.3*3,500)
Processing hours= 750 + 600 + 1,050
Processing hours= 2,400
<u>Now, we can calculate the predetermined overhead rate:</u>
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= 207,000 / 2,400
Predetermined manufacturing overhead rate=$86.25 per processing hour
<u>To allocate overhead, we need to use the following formula:</u>
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Tortilla chips= 86.25*75= 64,687.5
Potato chips= 600*86.25= 51,750
Pretzels= 86.25*1,050= 90,562.5
<u>Finally, the unitary cost:</u>
Tortilla chips= 64,687.5 / 3,000= $21.56
Potato chips= 51,750 / 6,000= $8.63
Pretzels= 90,562.5 / 3,500= $25.88
