Answer:
Total allocated costs= $79,500
Explanation:
<u>First, we need to calculate the allocation rates:</u>
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
setup= 15,000/40= $375 per setup
machining= 225,000/5,000= $45 per hour
packing= 90,000/500= $180 per order
<u>Now, we can allocate costs to Product A1:</u>
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
setup=375*20= 7,500
machining= 45*1,000= 45,000
packing= 180*150= 27,000
Total allocated costs= $79,500
