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Can you show how the company's overhead rate of $12 per direct-labor hour was calculated and show me how you figured it out ? REG

  1. Can you show how the company's overhead rate of $12 per direct-labor hour was calculated and show me how you figured it out ?

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REG ADV GMT Planned annual production: Volume in units 5,000 4,000 1, 000 Production runs 40 runs of 125 units 40 runs of 100 units 20 runs of 50 units Direct material $129 $151 $203 Direct labor: (not including setup) $171 (9 hra. @ $19 per hr. ) $209 (11 hrs. @ $19 per hr. ) $247 (13 hrs. @ $19 per hr. ) Machine hours (MN) per product unit 10 MH 12 MH 17 MH Total machine hours consumed by product line in a year 50,000 (10 MH x 5, 000) 48,000 (12 MH x 4, 000) 17,000 (17 MH x 1, 000)REG ADV GMT Direct material $129.00 $151. 00 $203.00 Direct labor (not including set-up time) 171. 00 (9 hr. $19) 209.00 (11 hr. $19) 247.00 (13 hr. 156 . 00 (13 hr. $19) Manufacturing overhead 108.00 (9 hr. $12) 132 . 00 (11 hr. $12) $12) Total $408.00 $492 . 00 $606 .00Cost Driver Activity Product Activity Coat Pool Quantity for Cost Driver Line Machine related $310, 500 Product Line Machine Hours REG 50,000 ADV 48,000 GMT 17,000 Total 115,000 Material handling 52 , 500 Production Runs REG 40 ADV 40 GMT 20 Total 100 Purchasing 75,000 Purchase Orders REG 100 ADV 96 GMT 104 Total 300 Setup 85,000 Production Runs REG 10 ADV 40 GMT 20 Total 100 Inspection 27,500 Inspection REG 100 ADV 400 GMT 300 Total 1, 100 Shipping 66,000 Shipments REG 500 ADV 400 GMT 200 Total 1, 100 Engineering 32 , 500 Engineering Hours REG 250 ADV 200 GMT 200 Total 650 Facility 575,000 Machine Hours REG 50,000 ADV 48,000 GMT 17,000 Total 115, 000Required: 1. Show how the company's overhead rate of $12 per direct-labor hour was calculated. hours Predetermined overhead rate per direct labor hour

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