Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

5 ts Book ences . Solomon Corporation estimated its overhead costs would be $23,800 per month except or January when it pays the $173,040 annual

5 ts Book ences . Solomon Corporation estimated its overhead costs would be $23,800 per month except or January when it pays the $173,040 annual insurance premium on the manufacturing acility. Accordingly, the January overhead costs were expected to be $196,840 $173,040 + $23,800). The company expected to use 7,100 direct labor hours per month except during July, August, and September when the company expected 9,900 hours of lirect labor each month to build inventories for high demand that normally occurs during he Christmas season. The company's actual direct labor hours were the same as the estimated hours. The company made 3,550 units of product in each month except July, August, and September, in which it produced 4,950 units each month. Direct labor costs vere $23.60 per unit, and direct materials costs were $10.80 per unit. tequired Calculate a predetermined overhead rate based on direct labor hours. Determine the total allocated overhead cost for January, March, and August. Determine the cost per unit of product for January, March, and August. Determine the selling price for the product, assuming that the company desires to earn a gross margin of $20.60 per unit. Complete this question by entering your answers in the tabs below. Req A Req B to D b. Determine the total allocated overhead cost for January, March, and August. c. Determine the cost per unit of product for January, March, and August. d. Determine the selling price for the product, assuming that the company desires to earn a g Note: Do not round intermediate calculations. Round "Cost per unit" and "Selling price per un your total allocated overhead cost to nearest whole dollar. b. Total allocated overhead cost c. Cost per unit d. Selling price per unit January March August
image text in transcribed
iolomon Corporation estimated its overhead costs would be $23,800 per month except or January when it pays the $173,040 annual insurance premium on the manufacturing acility. Accordingly, the January overhead costs were expected to be $196,840 $173,040+$23,800 ). The company expected to use 7,100 direct labor hours per month xcept during July. August, and September when the company expected 9,900 hours of lirect labor each month to build inventories for high demand that normally occurs during he Christmas season. The company's actual direct labor hours were the same as the stimated hours. The company made 3,550 units of product in each month except July. tugust, and September, in which it produced 4,950 units each month. Direct labor costs vere $23.60 per unit, and direct materials costs were $10.80 per unit. lequired - Calculate a predetermined overhead rate based on direct labor hours. - Determine the total allocated overhead cost for January, March, and August. - Determine the cost per unit of product for January, March, and August. - Determine the selling price for the product, assuming that the company desires to earn a gross margin of $20.60 per unit. Complete this question by entering your answers in the tabs below. b. Determine the total allocated overhead cost for January, March, and August. c. Determine the cost per unit of product for January, March, and August. d. Determine the selling price for the product, assuming that the company desires to earn a Note: Do not round intermediate calculations. Round "Cost per unit" and "Selling price per your total allocated overhead cost to nearest whole dollar

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_2

Step: 3

blur-text-image_3

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

Accountants Truth Knowledge And Ethics In The Financial World

Authors: Matthew Gill

1st Edition

0199547149, 9780199547142

More Books

Students also viewed these Accounting questions

Question

Compare and contrast cultural preferences for online privacy

Answered: 1 week ago

Question

Provide examples of the various microcultures in the United States

Answered: 1 week ago