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: Business Home 1. Calculate the predetermined plantwide overhead rate, using direct labor hours. per hour Calculate the applied overhead for each product, using direct labor hours. Business Applied overhead Home Overhead Cost 2. Calculate the overhead cost per unit for each product. If required, round your answers to the nearest cent. $2,200,000 Profits would 55,000 per unit 15,000 40,000 per unit 30,000 200,000 3. What if the business printer used 30,000 hours (to produce 30,000 units) instead of 15,000 hours (total expected hours remain the same)? Calculate the effect on the profitability of this product line if all 30,000 units are sold. by $ Check My Work 5 more Check My Work uses remaining. All work saved. Email Instructor Save and Exit Submit Assignment for Grading v2.cengagenow.com Previous Next

Applied Overhead and Unit Overhead Cost: Plantwide Rates Imprimo, Inc, produces two types of ink-jet printers: business and home. Imprime sses a plantwide rate based on direct labor hours to asaign its overhead costs. The company has the following ertimated and actual data for the coming year: 1. Calculate the predetermined plantwide overhead rate, using direct labor hours. per hour Calculate the applied overthead for each product, using direct labor hours. 2. Calculate the overhead cost per unit for each product. If required, round your answers to the nearest cent. 3. What if the business printer used 30,000 hours (to produce 30,000 units) instead of 15,000 hours (cotal expected hours remain the same)? Caiculate the effect on the profitablity of this product line if all 30,000 units are soid. Profits would by