Applied Overhead and Unit Overhead Cost: Plantwide Rates

Seco, Inc., produces two types of clothes dryers: deluxe and regular. Seco 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

$$2,622,000$

Expected activity

$57,000$

Actual activity $($direct labor hours$)$:

$\backslash$table$[[$Deluxe dryer,$13,000],[$Regular dryer,$44,000]]$

Units produced:

Deluxe dryer

$26,000$

$220,000$

Regular dryer

Required:

Calculate the predetermined plantwide overhead rate, using direct labor hours. $$ per hour

Calculate the applied overhead for each product, using direct labor hours.

Applied overhead

Deluxe

Regular $

$2.$ Calculate the overhead cost per unit for each product. If required, round your answers to the nearest cent.

Overhead Cost

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