Benson Corporation estimated its overhead costs would be $22,200 per month except for January when it pays the $198,600 annual insurance premium on the manufacturing facility Accordingly, the January overhead costs were expected to be $220,800 ($198,600 $22,200) The company expected to use 7,200 direct labor hours per month except during July, August, and September when the company expected 9,400 hours of direct labor each month to build inventories for high demand that normally occurs during the Christmas season The companys actual direct labor hours were the same as the estimated hours The company made 3,600 units of product in each month except July, August, and September, in which it produced 4,700 units each month Direct labor costs were $24 10 per unit, and direct materials costs were $10 90 per unit Required Calculate a predetermined overhead rate based on direct labor hours Determine the total allocated overhead cost for January, March, and August Determine the cost per unit of product for January, March, and August Determine the selling price for the product, assuming that the company desires to earn a gross margin of $20 80 per unit Reg A Req B to D Calculate a predetermined overhead rate based on direct labor hours (Round your answer to 2 decimal Predetermined overhead rate per labor hour Determine the total allocated overhead cost, the cost per unit of product and the selling price for the product for January, March, and August Assume that the company desires to earn a gross margin of $20 80 per unit (Do not round intermediate calculations Round Cost per unit and Selling price per unit to 2 decimal places Round your total allocated overhead cost to nearest whole dollar ) Show less January March August Total allocated overhead cost Cost per unit Selling price per unit

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Sep 01, 2024

Benson Corporation estimated its overhead costs would be $22,200 per month except for January when it pays the $198,600 annual insurance premium on the manufacturing

Benson Corporation estimated its overhead costs would be $22,200 per month except for January when it pays the $198,600 annual insurance premium on the manufacturing facility. Accordingly, the January overhead costs were expected to be $220,800 ($198,600 + $22,200). The company expected to use 7,200 direct labor hours per month except during July, August, and September when the company expected 9,400 hours of direct labor each month to build inventories for high demand that normally occurs during the Christmas season. The companys actual direct labor hours were the same as the estimated hours. The company made 3,600 units of product in each month except July, August, and September, in which it produced 4,700 units each month. Direct labor costs were $24.10 per unit, and direct materials costs were $10.90 per unit. Required

Calculate a predetermined overhead rate based on direct labor hours.
Determine the total allocated overhead cost for January, March, and August.
Determine the cost per unit of product for January, March, and August.
Determine the selling price for the product, assuming that the company desires to earn a gross margin of $20.80 per unit.

image text in transcribed

Reg A Req B to D Calculate a predetermined overhead rate based on direct labor hours. (Round your answer to 2 decimal Predetermined overhead rate per labor hour Determine the total allocated overhead cost, the cost per unit of product and the selling price for the product for January, March, and August. Assume that the company desires to earn a gross margin of $20.80 per unit. (Do not round intermediate calculations. Round "Cost per unit" and "Selling price per unit" to 2 decimal places. Round your total allocated overhead cost to nearest whole dollar.) Show less January March August Total allocated overhead cost Cost per unit Selling price per unit