10 0.15 points Quarter First Second Third Fourth Direct materials $ 240,000 $ 120,000 $ 60,000 $ 180,000 Direct labor 160,000 80,000 40,000 120.00 Manufacturing overhead 230,000 206,000 194,000 Total manufacturing costs (a) $ 630,000 $ 406,000 294,600 $ Number of units to be produced (b) 10,000 40,000 20,000 60,000 Estimated unit product cost (a) (b) $ 7.88 $ 10.15 $ 14.70 Management finds the variation in quarterly unit product costs to be confusing. It has been suggested that the problem lies with manufacturing overhead because it is the largest element of total manufacturing cost. Accordingly, you have been asked to find a more appropriate way of assigning manufacturing overhead cost to units of product. Required: 1. Assuming the estimated variable manufacturing overhead cost per unit is $0.60, what must be the estimated total fixed manufacturing overhead cost per quarter? 2. Assuming the assumptions about cost behavior from the first three quarters hold constant, what is the estimated unit product cost for the fourth quarter? 3. What is causing the estimated unit product cost to fluctuate from one quarter to the next? 4. Assuming the company computes one predetermined overhead rate for the year rather than computing quarterly overhead rates, calculate the unit product cost for all units produced during the year 10 Prat References Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Assuming the estimated variable manufacturing overhead cost per unit is $0.60, what must be the estimated total fixed manufacturing overhead cost per quarter? Faed manufacturing overhead cost 10 Fourth $ 180,000 120, cee First $ 240, een 160, een 230, een $630, een BO, een $ 7.88 Direct naterials Direct labor Manufacturing overhead Total manufacturing costs (a) Number of units to be produced (b) Estimated unit product cost (a) (b) Quarter Second Third $ 120,000 $ 60,000 8e, cee 40.000 286,000 194,000 $ 486,000 $ 294,000 40,000 20,000 $ 10.15 $ 14.70 0.15 points $ 7 60, eee eBook Print Management finds the variation in quarterly unit product costs to be confusing. It has been suggested that the problem lies with manufacturing overhead because it is the largest element of total manufacturing cost. Accordingly, you have been asked to find a more appropriate way of assigning manufacturing overhead cost to units of product. Required: 1. Assuming the estimated variable manufacturing overhead cost per unit is $0.60, what must be the estimated total fixed manufacturing overhead cost per quarter? 2. Assuming the assumptions about cost behavior from the first three quarters hold constant, what is the estimated unit product cost for the fourth quarter? 3. What is causing the estimated unit product cost to fluctuate from one quarter to the next? 4. Assuming the company computes one predetermined overhead rate for the year rather than computing quarterly overhead rates. calculate the unit product cost for all units produced during the year. References Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Assuming the assumptions about cost behavior from the first three quarters hold constant, what is the estimated unit product cost for the fourth quarter? (Do not round intermediate calculations and round the Unit product cost to 2 decimal places.) Unt product cott Check 10 no, een 015 points Number of units to be produced (b) 40,000 20,000 60,000 Estimated unit product cost (a) (b) 10.15 $14.70 Management finds the variation in quarterly unit product costs to be confusing. It has been suggested that the problem lies with manufacturing overhead because it is the largest element of total manufacturing cost. Accordingly, you have been asked to find a more appropriate way of assigning manufacturing overhead cost to units of product Required: 1. Assuming the estimated variable manufacturing overhead cost per unit is $0.60, what must be the estimated total fixed 2. Assuming the assumptions about cost behavior from the first three quarters hold constant, what is the estimated unit product cost 3. What is causing the estimated unit product cost to fluctuate from one quarter to the next? 4. Assuming the company computer one predetermined overhead rate for the year rather than computing quarterly overhead rates, calculate the unit product cost for all units produced during the year. Pr Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required What is causing the estimated unit product cost to fluctuate from one quarter to the next? The fed portion of the manufacturing overhead cost is causing the unit product costs to fluctuate. The un product cost increases as the level of production decreases because the fred overhead is spread over fewer units The fixed portion of the manufacturing overtid cost is causing the unit product costs to fluct. The un product cost decreases as the level of production decreases because the fixed overhead is spread over fewer units. The variabile portion of the manufacturing overhead cost is causing the unit product costs to Nuctuate. The unit product cost increases as the level of production decreases because the variable overhead is spread over fewer units The variable portion of the manufacturing overhead cont is causing the unit product costs to fluctuate. The unit product cont decreases the level of production Secreases because the variable read is spread over fewer units Breda R 4 > Check my 10 015 Number of units to be produced (b) 50,00 40,000 Estimated unit product cost al. (6) 20,000 6,000 7.30 $ 10.15 $14.70 Management finds the variation in quarterly unit product costs to be confusing. It has been suggested that the problem lies with manufacturing overhead because it is the largest element of total manufacturing cost. Accordingly, you have been asked to find a more appropriate way of assigning manufacturing overhead cost to units of product Required: 1. Assuming the estimated variable manufacturing overhead cost per unit is $0.60, what must be the estimated total fixed manufacturing overhead cost per quarter? 2. Assuming the assumptions about cost behavior from the first three quarters hold constant, what is the estimated unit product cost for the fourth quarter? 2. What is causing the estimated unit product cost to fluctuate from one quarter to the next? 4. Assuming the company computes one predetermined overhead rate for the year rather than computing quarterly overhead rates, calculate the unit product cost for all units produced during the year och Print o Reference Complete this question by entering your answers in the tabs below. Required Required 2 Required Hequire Assuming the company computes one predetermined overhead rate for the year rather than computing quarterly overhead rates, calculate the unit product cost for all units produced during the year. (Do not und intermediate calculations and round the unit product cost to 2 decimal places) Unit productos