1. The Boles Shirt Company manufactures shirts in two departments: Cutting and Sewing. The company allocates manufacturing overhead using a single plantwide rate with direct labor hours as the allocation base. Estimated overhead costs for the year are $412,500, and estimated direct labor hours are 150,000. In June, the company incurred 16,400 direct labor hours. 1. Compute the predetermined overhead allocation rate. 2. Determine the amount of overhead allocated in June. The Boles Shirt Company has refined its allocation system by separating manufacturing overhead costs into two cost e for each department (Click the icon to view the estimated costs and allocation data for each department.) 3. Compute the predetermined overhead allocation rates for each department 4. Determine the total amount of overhead allocated in June. 1. Compute the predetermined overhead allocation rate Begin by selecting the formula to calculate the predetermined overhead (OH) allocation rate. compute the allocation rate using a single plantwide rate with direct labor hours as the allocation base.. Then enter the amounts to Predetermined OH 1 Estimated gty of the allocation baseacti rate S 2.75 Estimated overhead costs 412,500 150,000 2. Determine the amount of overhead allocated in June. Begin by selecting the formula to allocate overhead costs. aliocation base. Allocated mfg overhead costs Actual qty of the allocation base used Predetermined OH allocation rate x 45,100 The overhead allocated in June is S 3. Compute the predetermined overhead allocation rates for each department Begin by selecting the formula to calculate the predetermined overhead (OH) allocation rate. Then enter the amounts to compute the allocation rate for each department. Estimated overhead costs Estimated qty of the allocation baseallocation rate 2.20 2.70 127,000 279,400 Cutting 140,000 378,000 Sewing 4. Determine the total amount of overhead allocated in June. Compute the overhead allocated in June for each department and the total for both departments. Cutting Sewing Total 1/2 1: More Info The estimated costs for the Cutting Department are $279,400. They will be allocated based on dired are estimated to be 127,000 hours for the year. The estimated costs for the Sewing Department are costs will be allocated based on machine hours, which are estimated to be 140.000 hours for the yoar. In June company incurred 14,000 direct labor hours in Cutting and 10.500 machine hours in Sewing. $378,000. Those