Answer:
Standard= $24,800
Explanation:
Giving the following information:
Number of: Setups Components
Standard 22 8
Deluxe 28 12
Overhead costs $20,000 $40,000
<u>First, we need to calculate the predetermined overhead rate for each activity:</u>
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Setups= 20,000 / (22+28)= $400per setup
Components= 40,000 / (8+12)= $2,000 per component
<u>Now, we can allocate overhead:</u>
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Standard= 400*22 + 2,000*8
Standard= $24,800
