Incomplete Question
Below, is the missing part of the incomplete question.
Please note that the data in the missing part of the question may differ from your question
But I'll solve this question based on general terms.
You'll arrive at your answer if you apply the same logic to yours.
Missing Part of the Question
These data represent total costs for all types of lamps produced by the Company.
Activity Center ---- Unit-level --- Batch-level --- Product-level --- Facility-level
Overhead Cost $60,000 $24,000 $12,000 $72,000
Cost Driver 10,000 labor hrs 480 setup % of use 72,000 units
Allocation Rate. $6 per labor hr. $ 50 per setup --------- $ 1 per unit
Answer:
Total Allocation Overhead = $38,640
Explanation:
Given.
Labour hours = 2,300
To calculate the total allocated overhead,
First we'll calculate the allocation rate.
Allocation Rate is calculated by: Cost to be allocated / Allocation base
Where Cost to be allocated= $60,000 + $24,000 + $12,000 + $72,000
Cost to be allocated = $168,000
Allocation Base = Cost Driver at unit level = 10,000 labour hours.
So, Allocation Rate = $168,000/10,000
Allocation Rate = $16.8 per hour
Now, to get the Total allocated overhead;
It is calculated by
Allocation rate * Weight of the base
Where Allocation Rate = $16.8 per hour
Weight of the base = 2,300 labour hours ------ Given
Total Allocated Overhead = 2300 labour hours * $16.8
Total Allocated Overhead = $38,640