Answer:
Total overhead= $2,423,100
Explanation:
Giving the following information:
During 2016 the firm worked 660 research hours, prepared 25,000 document pages, and 10,000 professional hours.
<u>First, we need to calculate the predetermined overhead rate for each activity:</u>
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Researching= 31,500/900= $35 per research hour
Meeting with clients= 1,760,000/8,800= $200 per professional hour
Preparing legal documents= 480,000/30,000= $16 per page
<u>Now, we can allocate overhead:</u>
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Researching= 35*660= $23,100
Meeting with clients= 200*10,000=$2,000,000
Preparing legal documents= 16*25,000= $400,000
Total overhead= $2,423,100