3) Bag Lad manufacturing overhead using a single plantwide rate with direct labo

Question

3) Bag Lad manufacturing overhead using a single plantwide rate with direct labor cost as the a Estimated overhead costs for the year are $25,500. Additional estimated ies, Inc. manufactures two kinds of bags-totes and satchels. The company a allocation base. (10 Points) information is given below Tot Direct materials cost per unit Satchel $4 irect labor cost per unit Number of units $51 53 Calculate the amount of overhead to be allocated to Totes. (Round any percentages to two and your final answer to the nearest dollar.) A) $500 B) $330 1ao £11 556

Explanation / Answer

Total estimated direct labour cost:

=(530×$51)+(350×$64)

=$49,430

Predetermined overhead allocation rate=total estimated overhead costs/total estimated direct labour cost

=$25,500/$49,430

=51.59%

Manufacturing overhead cost allocated to Totes:

=(530×$51)×51.59%

=$13,945

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