dala R58G R09o S15.90 $52.40 Direct labor per unit. Annual production (units The
ID: 2406482 • Letter: D
Question
dala R58G R09o S15.90 $52.40 Direct labor per unit. Annual production (units The company's estrnsted total manufacturng overheed fo·the year is $1,517,600 dnd th e comudmy's esirnstev totel drect abo, hors for the year is 24.000. 0.10 2.10 30,000 10,000 Estimated Overhead Cost $696,000 Activities and Activity Measures Assembling p Preparing batches (batches) Product support (product variations) Total 252,000 R58G RO90 DLHs Batches Product variations.. otal 3,000 21,000 24,000 528 1,152 1,680 1,056 1,176 2,232 Requred infamation 100 points The manufaczuring overnced that would be applied to a unit of product R5BG under the compeny's treditional casting cystcm is cleaest b O $6.74 O $1610 O $2284 O $2.30 References Mutple Cholco Difficuity 2 Objocthe: 03 08 (Appendb 3A) Usc acthity bascd absorption coting to compute unit product cExplanation / Answer
Answer to Question 1:
Total Manufacturing Overhead = $1,617,600
Direct labor-hours = 24,000
Predetermined Overhead Rate = Total Manufacturing Overhead / Direct labor-hours
Predetermined Overhead Rate = $1,617,600 / 24,000
Predetermined Overhead Rate = $67.40
Product R58G:
Direct labor-hours = Direct labor-hours per unit * Actual production
Direct labor-hours = 0.10 * 30,000
Direct labor-hours = 3,000
Manufacturing Overhead applied = Predetermined Overhead Rate * Direct labor-hours
Manufacturing Overhead applied = $67.40 * 3,000
Manufacturing Overhead applied = $202,200
Manufacturing Overhead applied per unit = Manufacturing Overhead applied / Actual production
Manufacturing Overhead applied per unit = $202,200 / 30,000
Manufacturing Overhead applied per unit = $6.74
Answer to Question 2:
Assembly Products:
Activity Rate = Estimated Overhead Cost / Expected Activity
Activity Rate = $696,000 / 24,000
Activity Rate = $29.00
Preparing Batches:
Activity Rate = Estimated Overhead Cost / Expected Activity
Activity Rate = $252,000 / 1,680
Activity Rate = $150.00
Product Support:
Activity Rate = Estimated Overhead Cost / Expected Activity
Activity Rate = $669,600 / 2,232
Activity Rate = $300.00
Product R09O:
Manufacturing Overhead applied = $29.00 * 21,000 + $150.00 * 1,152 + $300.00 * 1,176
Manufacturing Overhead applied = $1,134,600
Manufacturing Overhead applied per unit = Manufacturing Overhead applied / Actual production
Manufacturing Overhead applied per unit = $1,134,600 / 10,000
Manufacturing Overhead applied per unit = $113.46
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