Reference no: EM132510625

Maureen Corporation estimated its overhead costs would be $22,800 per month except for January when it pays the $167,730 annual insurance premium on the manufacturing facility. Accordingly, the January overhead costs were expected to be $190,530 ($167,730 + $22,800). The company expected to use 7,100 direct labor hours per month except during July, August, and September when the company
expected 10,000 hours of direct labor each month to build inventories for high demand that normally occurs during the Christmas season. The company's actual direct labor hours were the same as the estimated hours. The company made 3,550 units of product in each month except July, August, and September, in which it produced 5,000 units each month. Direct labor costs were $23.00 per unit, and direct materials costs were $10.90 per unit.

Question a. Calculate a predetermined overhead rate based on direct labor hours. (Round your answer to 2 decimal places] Predetermined Overhead Rate: per labor hour

Question b. Determine the total allocated overhead cost for January, March, and August. [Do not round intermediate calculations. Round your answers to the nearest whole dollar amount]