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Applied Overhead and Unit Overhead Cost: Plantwide Rates Imprimo, Inc., produces two types of ink-jet printers: business and home. Imprimo uses a plantwide rate
Applied Overhead and Unit Overhead Cost: Plantwide Rates Imprimo, Inc., produces two types of ink-jet printers: business and home. Imprimo uses a plantwide rate based on direct labor hours to assign its overhead costs. The company has the following estimated and actual data for the coming year: Estimated overhead Expected activity Actual activity (direct labor hours): Business printer Home printer Units produced: Business printer Home printer Required: $1,728,000 48,000 8,000 40,000 16,000 200,000 1. Calculate the predetermined plantwide overhead rate, using direct labor hours. per hour Calculate the applied overhead for each product, using direct labor hours.
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