ou hat is t looo/3 333.33 How many units would need to be sold to make a total n

Question

ou hat is t looo/3 333.33 How many units would need to be sold to make a total net income of $5,000? D. perv Chapter 5 Direct Material (per unit) Direct Labor (per unit) Estimated Direct Labor hours Actual Direct Labor hours for month Estimated MOH Actual MOH for month DL hours per unit 3 1,300 110 2,600 230 2 hours 1. What is the company's predetermined overhead rate based on Direct Labor hours? 2. What is MOH applied in total for the month? 3. What is the MOH applied for one unit? 4. What is the total product cost for one unit? 5. Is the MOH over-or under-applied and by how much?

Explanation / Answer

1 Predetermined overhead rate = 2600/1300 = $2 2 MOH applied = 110*2 = 220 3 MOH applied per unit = 220/55=4 4 Total product cost = 5+3+4 = $12 5 MOH over-applied = 230-220 = $10

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