Answer:
Unitary total cost= $123.74
Explanation:
<u>First, we need to calculate the activities rates to allocate costs:</u>
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Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Assembly= 926,800/56,000= $16.55 per machine-hour
Processing orders= 68,310 / 1,800= $37.95 per order
Inspection= 103,360 / 1,360= $76 per inspection-hour
<u>Now, we can allocate costs based on actual activity:</u>
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Assembly= 16.55*1,060= 17,543
Processing orders= 37.95*80= 3,036
Inspection= 76*20= 1,520
Total allocated costs= $22,099
Unitary allocated costs= 22,099/700= $31.57
<u>Finally, the unitary total cost:</u>
Unitary total cost= 31.57 + 51 + 41.17
Unitary total cost= $123.74
