Answer:
Results are below.
Explanation:
<u>First, we need to calculate the activities allocation rate:</u>
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Material handeling= 8,700/2,900= $3 per part
Machine setup= 4,650/15= $310 per setup
Insertion of parts= 49,300/2,900= $17 per part
Finishing= 75,600/1,800= $42 per direct labor hour
<u>Now, we can allocate overhead to Job 420:</u>
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Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Material handeling= 3*150= $450
Machine setup= 310*4= $1,240
Insertion of parts= 17*150= $2,550
Finishing= 42*120= $5,040
Total allocated costs= $9,280
<u>Finally, allocated costs to Job 510:</u>
Material handeling= 3*500= $1,500
Machine setup= 310*5= $1,550
Insertion of parts= 17*500= $8,500
Finishing= 42*320= $13,440
Total allocated costs= $24,990
