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ABC, Inc. produces desktop and laptop computers. The company applies manufacturing overhead cost to products based on the basis of direct labor hours. Estimated cost
ABC, Inc. produces desktop and laptop computers. The company applies manufacturing overhead cost to products based on the basis of direct labor hours. Estimated cost information of these two products is as follows. Unit Cost Information Desktop Laptop Direct materials $100 $120 Direct labor $160 $230 Manufacturing overhead ? 2 Production Information Desktop Laptop Units produced 5.000 10,000 Direct labor hours per 0.4 unit 0.6 Total manufacturing overhead cost is $1,800,000. Answer the following questions: 1. Compute the predetermined overhead rate per direct labor hour 2. Compute the total manufacturing overhead cost would be assigned to each product. 3. Compute manufacturing overhead per unit and the total manufacturing cost per unit for each product
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