i edugen Weygandt, Financial&Managerial; Accounting, 2 Help I System Announcemen
ID: 2571029 • Letter: I
Question
i edugen Weygandt, Financial&Managerial; Accounting, 2 Help I System Announcements t.1. Unread) Exercise 18-5 (Part Level Submission) Perdon Corporation manufactures Perdon is analyzing the prottability of its two products. Part of this analysis i product ine. The information shown below relates to overhead safes-large mobile sates, and larpe walk-in statianary bank safes. As part of its annual budgeting process, nvolves estimating the amount of overhead to be allocated to each Part Mobile Safes 190 300 450 810 Walk-in Safes Units planned for production Material moves per product ine Punchase orders per product line Direct labor hours per product line ian) on) 340 1,710 by Study (a) The total estimated manufacturing overheac was 5280,000. Under tradtional costing Cohich assgns overhead on the bass of direct jabor hours). what amount of racturing overhead costs ae assigned to.(Round answers to 2 doome, dei alaces np 12.283 (1) One mobile safe s per unit per unn Attempts o of 3 usedSAVE FOR LATERExplanation / Answer
Total Overhead = $ 280000
Total hours required for producing 190 units of mobile safe and 47 units of walk in safe = 810+1710 = 2520 labour hours
Overhead absorption rate = $280000 / 2520 hours = $111.11 per direct labour hours
Overhead to be assigned to one unit of mobile safe = labour hour required per unit x overhead absorption rate = (810 hrs. / 190 units) x $111.11 per hour = $473.67 per unit
Overhead to be assigned to one unit of walk in safe = labour hour required per unit x overhead absorption rate = (1710 hrs. / 47 units) x $111.11 per hour = $4042.51 per unit
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