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3 years ago

Required information

Business

1 answer:

Bezzdna [24]3 years ago

8 0

Answer:

Total allocated costs= $19

Explanation:

First, we need to calculate the predetermined manufacturing overhead rate for each department:

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

Now, we can allocate overhead:

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

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