Answer:
Allocated MOH per unit= $45.94
Explanation:
Giving the following information:
Product Number of Units Labor Hours Per Unit
Blinks 1,178 2
Dinks 2,060 3
Estimated overhead costs for the period= 108,300 + 87,800= $196,100
Total direct labor hours= (1,178*2) + (2,060*3)= 8,536
<u>First, we need to 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= 196,100 / 8,536
Predetermined manufacturing overhead rate= $22.97 per direct labor hour
<u>Now, we allocate overhead to Blinks:</u>
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Allocated MOH= 22.97*2= $45.94
