Answer:
Total allocated overhead= $9,532.42
Explanation:
Giving the following information:
Activity Rate
Setting up batches= $59.06 per batch
Processing customer orders= $72.66 per customer order
Assembling products= $3.75 per assembly hour
Product K91B
Number of batches 86
Number of customer orders 36
Number of assembly hours 490
To allocate overhead, we need to use the following formula on each activity rate:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Setting up= 59.06*86= 5,079.16
Processing= 72.66*36= 2,615.76
Assembling= 3.75*490= 1,837.5
Total allocated overhead= $9,532.42
