Answer:
Results are below.
Explanation:
<u>First, we need to calculate the activities rate:</u>
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Activity 1= 24,000 / 1,000= $24 per activity unit
Activity 2= 36,900 / 900= $41 per activity unit
Activity 3= 63,000 / 1,800= $35 per activity unit
<u>Now, we can allocate costs to product A:</u>
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Activity 1= 24*200= $4,800
Activity 2= 41*750= $30,750
Activity 3= 35*1,000= $35,000
Total allocated costs= $70,550
<u>Finally, the unitary cost:</u>
Unitary cost= 70,550 / 5,000= $14.11
