?Bella, Inc. manufactures two kinds of bagslong dashtotes and satchels. The company allocates manufacturing overhead using a single plantwide rate with direct labor cost as the allocation base. Estimated overhead costs for the year are $ 24000. Additional estimated information is given below.
Totes
Satchels
Direct materials cost per unit
$ 35
$ 45
Direct labor cost per unit
$ 52
$ 64
Number of units
540
390
Calculate the predetermined overhead allocation rate.? (Round your answer to two decimal? places.)
Ans:
Pre. Allocation= total estimated OH costs/total estimated quantity
52x540=28,080
64x390=24960
24960+28,080=53040
24,000/53040=45.25%
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