1. The Madsen 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 costs for the year are $420,000, and estimated direct labor hours are 210,000. In June, the company incurred 18,400 direct labor hours. 1. Compute the predetermined overhead allocation rate. 2. Determine the amount of overhead allocated in June The Madsen Shirt Company has rofined its allocation system by separating manufacturing overhead costs into two cost pools -one for each department. the icon to view the estimated costs and allocation data for each department.) 3. Compute the predetermined overhead allocation rates for each department. Determine the total amount of overhead allocated in June. 4. 1. Compute the predetermined overhead allocation rate. Begin by selecting the formula to calculate the predetermined overhead (OH) allocation rate. Then enter the amounts to compute the allocation rate using a single plantwide rate with direct labor hours as the allocation base. Predetermined OH Estimated overhead costs Estimated qty of the allocation base allocation rate $2.00 420,000 210,000 2. Determine the amount of overhead allocated in June. Begin by selecting the formula to allocate overhead costs. Use a single plantwide rate with direct labor hours as the allocation base. Allocated mfg. Predetermined OH allocation rateActual qty of the allocation base used overhead costs 36,800 The overhead allocated in June is $ 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 base- allocation rate $ 1.90 127,000 241,300 Cutting $ 2.70 120,000 324,000 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 $241,300. They will be allocated based on direct labor hours, which are estimated to be 127,000 hours for the year. The estimated costs for the Sewing Department are $324,000. Those costs will be allocated based on machine hours, which are estimated to be 120,000 hours for the year. In June, the company incurred 14,000 direct labor hours in Cutting and 16,500 machine hours in Sewing