Answer:
Instructions are below.
Explanation:
We weren't provided with enough information to calculate the requirements. But, I will provide the formulas and a small example.
For example:
Estimated overhead for the period= $750,000
Estimated direct labor hours= 25,000
Actual hours= 19,000
To calculate the predetermined manufacturing overhead rate we need to use the following formula:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= 750,000/25,000
Predetermined manufacturing overhead rate= $30 per direct labor hour
Now, we can allocate overhead:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Allocated MOH= 30*19,000
Allocated MOH= $570,000
