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Predetermined overhead rate-unit of product per unit Predetermined overhead rate-basis on direct labour cost % 2. Recompute the company's unit product costs in accordance with your recommendations in (1) above. (Round your answers to 2 decimal places.) Quarter First Second Third Fourth Estimated unit product costJacarda Company makes a composting bin that is subject to wide seasonal variations in demand. Unit product costs are computed on a quarterly basis by dividing each quarter's manufacturing costs (materials, labour, and overhead) by the quarter's production in units. The company's estimated costs, by quarter, for the coming year are given below: Quarter First Second Third Fourth Direct materials $ 802,400 $ 401,200 $200,600 $ 601,800 Direct labour 401,200 200,600 100,300 300,900 Manufacturing overhead Total manufacturing costs Number of units to be produced Estimated unit product $ cost 536,900 489,700 466,100 513,300 $1,740,500 $1,091,500 $ 767,000 $1,416,000 118,000 59,000 29,500 88,500 14.75 $ 18.50 $ 26.00 $ 16.00 Management finds the variation in unit product costs to be confusing and difficult to work with. It has been suggested that the problem lies with manufacturing overhead, since it is the largest element of cost. Accordingly, you have been asked to find a more appropriate way of assigning manufacturing overhead cost to units of product. After some analysis, you have determined that the company's overhead costs are mostly fixed and therefore show little sensitivity to changes in the level of production. Required: 1. Calculate the predetermined overhead rate based on units and direct labour? (Round your "per unit" answer to 2 decimal places.) Weaver Company's predetermined overhead rate is $17.00 per direct labour-hour, and its direct labour wage rate is $11.00 per hour. The following information pertains to Job A 200: Direct materials $360 Direct labour $330 Required: 1. What is the total manufacturing cost assigned to Job A-200? 2. If Job A-200 consists of 40 units, what is the average cost assigned to each unit included in thejob? -- 18 Carera Corporation uses a predetermined overhead rate of $23.60 per direct labour- hour. This predetermined rate was based on 13,600 estimated direct labourhours and $320,960 of estimated total manufacturing overhead. The company incurred actual total manufacturing overhead costs of $305,740 and 14,200 total direct labour-hours during the period. Required: Determine the amount of manufacturing overhead applied to units of product during the period as well as the amount of over- or underapplied overhead for the period. Manufacturing overhead
