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Working on traditional costing. Step 1: Compute for the overhead Production 1,650,000 Materials 525,150 Cleansing 275,000 Inspection 122,600 Total Estimated OH 2,572,750 OH Rate =

Working on traditional costing. Step 1: Compute for the overhead

Production 1,650,000

Materials 525,150

Cleansing 275,000

Inspection 122,600

Total Estimated OH 2,572,750

OH Rate = 2,572,750/125,000 = 20.58 per direct labor hour

Overhead = 1,175 x 20.58 = 24,181.50 There are also 780 hours for cleansing provided. I believe this should be included also to come up with the overhead cost? I can provide more information from the total scenario

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