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Answer: The Total Overhead Cost allocated to Department 1 is Caculated as Cost Driver Qunatity Incurred OH Allocated Activity Rate of Direct Labor 25% Cost Per Machine 6.00 Hour $ Costs to be Alloted Estimated Cost Estimated Cost Driver Indirect Labor and Direct Labor Supplies 8000 32000 Cost Rent, Utilities, general Machine Use office and depreciation 19200 3200 Hours Total OH cost Allocated 17,000 $ 4,250 $ 1820 $ $ 10,920 15,170
Cost Driver Qunatity Incurred Costs to be Alloted Estimated Cost Estimated Cost Driver Activity Rate OH Allocated Indirect Labor and Supplies -4950+3050 32000 Direct Labor Cost =B5/C5 of Direct Labor Cost 17000 =G5 E5 Rent, Utilities, general office and depreciation 3200 Machine Use Hours | =B6/C6 Per Machine Hour 1820 =10400+4900+3900 Total OH cost Allocated -G6*E6 =SUM(H5:16)
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