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Production workers for Thornton Manufacturing Company provided 430 hours of labor in January and 660 hours in February. Thorn

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Answer #1
January            9,030
February          13,860

Predetermined over head rate = ($7,000 per month * 12 months)/4,000 hours per year

= $84,000/4,000 hours

= $21 per hour.

So allocated cost for January = $21 per hour * 430 hours = $9,030

Allocated cost for February = $21 per hour * 660 hours = $13,860

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