Adams Corporation expects to incur indirect overhead costs of $134,750 per month and direct manufacturing costs of $17 per unit. The expected production activity for the first four months of 2017 is as follows: Estimated production in unita January February March 4,700 8,500 4,800 April 6,500 Required a. Calculate a predetermined overhead rate based on the number of units of product expected to be made during the first four months of the year b. Allocate overhead costs to each month using the overhead rate computed in Requirement a c. Calculate the total cost per unit for each month using the overhead allocated in Requirement b. Complete this question by entering your answers in the tabs below. Required A Required B Required Calculate a predetermined overhead rate based on the number of units of product expected to be made during the first four months of the year Predetermined overhead rale I per unit Required 8 > Adams Corporation expects to incur indirect overhead costs of $134,750 per month and direct manufacturing costs of $17 per unit. The expected production activity for the first four months of 2017 is as follows: Estimated production in units January February March 4,700 8,500 4,800 April 6,500 Required a. Calculate a predetermined overhead rate based on the number of units of product expected to be made during the first four months of the year. b. Allocate overhead costs to each month using the overhead rate computed in Requirement a c. Calculate the total cost per unit for each month using the overhead allocated in Requirement b. Complete this question by entering your answers in the tabs below. Required A Required B Required Allocate overhead costs to each month using the overhead rate computed in Requirement a. Allocated Cost Month January February March April Total ( Required A Required ) Adams Corporation expects to incur indirect overhead costs of $134,750 per month and direct manufacturing costs of $17 per unit. The expected production activity for the first four months of 2017 is as follows: Estimated production in units January February March 4,700 8,500 4,800 April 6,500 Required a. Calculate a predetermined overhead rate based on the number of units of product expected to be made during the first four months of the year. b. Allocate overhead costs to each month using the overhead rate computed in Requirement a c. Calculate the total cost per unit for each month using the overhead allocated in Requirement b. Complete this question by entering your answers in the tabs below. Required A Required B Required Calculate the total cost per unit for each month using the overhead allocated in Requirement b. Month January February March April Number of units 4.700 8,500 4,800 6,500 Expected cost Overhead Direct costs Total cost 0 Cost per unit
