1. Sara Company produces two types of clothes dryers: deluxe and regular. Seco uses a plantwide rate based on direct labour hours to assign its overhead costs. The company has the following estimated and actual data for the coming year:

Estimated overhead	$1,000,000
Expected activity (Direct Labour hours)	40,000
Actual activity (direct labour hours):
Deluxe dryer	15,000
Regular dryer	30,000
Units produced:
Deluxe dryer	10,000
Regular dryer	100,000

1. Calculate the predetermined plantwide overhead rate and the applied overhead for each product, using direct labour hours.

2. Calculate the overhead cost per unit for each product.

Write formula wherever required. Provide all the working out, do not just write the final answers.

2. Laser Company produced 80,000 machine parts for diesel engines. There were no beginning or ending work-in-process inventories in any department. Laser incurred the following costs for June:

	Mixing Department	Tableting Department	Bottling Department
Direct materials	$15,000	$5,500	$8,500
Direct labor	11,000	8,200	10,000
Applied overhead	15,000	12,000	13,000

Required:

1. Calculate the costs transferred out of each department.

2. Prepare the journal entries corresponding to these transfers.

Provide all the working outs, do not just write the final answers. Use the template given to write the journal entries

Can you please answer it in 20 minute please?