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The Rowan Shirt Company manufactures shirts in two departments: Cutting and Sewing. The company allocates manufacturing overhead using a single plantwide rate with direct labor

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The Rowan 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 $600,000, and estimated direct labor hours are 150000. In June, the company incurred 18,600 direct labor hours. 1. Compute the predetermined overhead allocation rate . 2. Determine the amount of overhead allocated in June . The Rowan Shirt Company has refined its allocation system by separating manufacturing overhead costs into two cost poolsone for each department. O (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. 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 - allocation rate More Info 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 . The estimated costs for the Cutting Department are 5171,600. They will be allocated based on direct labor hours, which are estimated to be 132,000 hours for the year. The estimated costs for the Sewing Department are $266,000. Those costs will be allocated based on machine hours, which are estimated to be 140,000 hours for the year in June, the company incurred 13,000 direct labor hours in Cutting and 13,500 machine hours in Sewing . Allocated mfg overhead costs The overhead allocated in June is 5 O. Print Done

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