Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

2. Choice Hotels' production manager proposes allocating overhead by direct labor hours instead, since the different models require different amounts of labor. How much overhead

image text in transcribed

2. Choice Hotels' production manager proposes allocating overhead by direct labor hours instead, since the different models require different amounts of labor. How much overhead would be allocated to each guest room (per unit and in total) using this method? Show all supporting calculations.

I need help with % of overhead per unit????

Font Alignment abc- Number Percentage Format Accents 11 A-A- Wrap Text - Accent | Accen (Body I U Merge - - % 9 Conditional Formatting Comma op Currency Curren - M N K Choice Hotels Sales Production, and Cost Information Standard Guest Room Type Junior Suite Room Presidential Suite Volume 150 110 25 Price $140,000 $240,000 $1,050.000 Unit costs Direct materials $30,000 $92,000 $310.000 Type Depreciation Maintenance Purchasing Inspection O Overhead Costs Cost $3,200,000 $1,800,000 $320,000 $850,000 Direct labor $54,000 585,000 5640,000 Indirect materials $490,000 Manufacturing overhead $30,000 $30,000 Supervision $1,700,000 $30,000 $190,000 Totalnit cost $114.000 Supplies Total manufacturing overhead cost $207,000 $980,000 $8.550,000 Unit gross profit $25,000 $33,000 $70,000 Note: Manufacturing overhead costs are fred. They do not very with the volume of manufacturing activity. 1300 5.540 Direct labor hours Rate per hour 1,200 $45.00 $65.38 $107.74 Andwer Questions 1 and 2 Below 1 Total manufacturing overhead costs Rate per unit Standard unior $30,000 Presidential $30,000 of Rooms Total Overhead 150 $4,500,000 110 $3,300,000 25 $750,000 % of total Overhead 52.63% 38 60% 8.77% Labor Hours Units % of total labor of overhead per unit 150 110 Standard Junior Presential Total 1,200 1,300 5.940 8,440 Total labor Hours Total cost of labor 180.000 $8,100,000 143,000 $9,349,340 148.500 $15.999,390 471,500 33.440.210 of labor per unit 24.22% 27.95 47.83 100.00% 30.33% 31 50% 100.00% 2015

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Guidelines For Auditing Process Safety Management Systems

Authors: CCPS (Center For Chemical Process Safety)

2nd Edition

0470282355, 978-0470282359

More Books

Students also viewed these Accounting questions