Answer and Explanation:
1. The computation of predetermined OH allocation rate is shown below:-
Predetermined OH allocation Rate = Estimated overhead cost ÷ Estimated Direct labor hours
= 200,000 ÷ 100,000
= 2
2. The computation of the amount of OH allocated in June is shown below:-
Amount of OH allocated in June = Actual Direct labor hours × Overhead allocation Rate
= 15,500 × 2
= 3,100
3. The computation of predetermined OH allocation rates for each department is shown below:-
Overhead allocation Rate Estimated overhead costs ÷ Estimated Direct labor hour
For Cutting Dept = 259,600 ÷ 118,000
= 2.2
For Sewing Dept = 513,000 ÷ 190,000
= 2.7
4. The computation of the total amount of OH allocated in June is shown below:-
Amount of overhead allocated in June
= Machine hours × Predetermined OH allocation rate
For Cutting Dept = 13,000 × 2.2
= 28,600
For Sewing Dept = 7,000 × 2.7
= 18,900
