Answer:
Results are below.
Explanation:
<u>To calculate the activity rate for each activity cost pool, we need to use the following formula on each activity:</u>
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Labor-related= 16,800/2,000= $8.4 per direct labor hour
Machine-related= 16,000/8,000= $2 per machine-hour
Machine setups= 30,400/800= $38 per setup
Production orders= 6,600/200= $33 per order
Product testing= 12,000/500= $24 per test
Packaging= 51,000/3,400= $15 per package
General factory= 55,600/2,000= $27.8 per direct labor-hour
<u>Now, the plantwide predetermined factory overhead:</u>
Total overhead= $188,400
Total direct labor hours= 2,000
Predetermined manufacturing overhead rate= 188,400/2,000
Predetermined manufacturing overhead rate= $94.2 per direct labor hour
