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asmussen Corporation expects to incur indirect overhead costs of $80,000 per month and direct manufacturing costs of $12 per unit. The expected production activity for
asmussen Corporation expects to incur indirect overhead costs of $80,000 per month and direct manufacturing costs of $12 per unit. The expected production activity for the first four months of the year are as follows.
JanuaryFebruaryMarchAprilEstimated production in units6,0007,0003,0004,000
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.
- Allocate overhead costs to each month using the overhead rate computed in Requirementa.
- Calculate the total cost per unit for each month using the overhead allocated in Requirementb.
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