Answer:
Total allocated costs= $19
Explanation:
<u>First, we need to calculate the predetermined manufacturing overhead rate for each department:</u>
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Assembly= 390,000 / 390,000= $1 per machine hour
Finishing= 581,100 / 149,000= $3.9 per direct labor hour
<u>Now, we can allocate overhead:</u>
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Assembly= 1*3.4= $3.4
Finishing= 3.9*4= $15.6
Total allocated costs= $19