Answer:
Allocated overhead per unit= $132 per unit
Step-by-step explanation:
Giving the following information:
Budgeted machine-hours= 10,600 hours
Budgeted variable manufacturing overhead costs for 42,400 units $349,800
We need to calculate the estimated overhead rate, then allocate overhead to each unit:
Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Estimated manufacturing overhead rate= 349,800/10,600
Estimated manufacturing overhead rate= $33 per machine hour
Each unit requires:
Machine hour per unit= 42,400/10,600= 4 machine hour
Allocated overhead per unit= 33*4= $132 per unit