Chapter 4 Homework 1. Kenneth Corporation expects to incur indirect overhead costs of $112,575 per month and direct manufacturing costs of $23 per unit. The expected production activity for the rst four months of 2013 is as follows. January > February March | April Estimated Production in units 4,500 8,400 3,700 | 7,100 a. Calculate a predetermined overhead rate based on the number of units of product expected to be made during the rst four months of the year. Predetermined overhead rate: per unit b. Allocate overhead costs to each month using the overhead rate computed in Requirement 3. Month Allocated Cost ! ! c. Calculate the total cost per unit for each month using the overhead allocated in Requirement b. Month January February March April 4,500 8,400 3,700 7,100 Direct Costs