Complete questions C and D please!
c. During the year, actual manufacturing overhead incurred (fixed plus variable) was $3,110,000, and the actual number of direct labor hours used producing the four hearing aids was: Calculate the over-or under-absorbed overhead DigitalEar for this year. d. Assuming that the entire over- or under-absorbed overhead you calculated in part ( c is written off to cost of goods sold, does this write-off increase or decrease net income before taxes? Explain. =$34.26 per direct labor hour Therefore, the budgeted manufacturing overhead rate per direct labor hour for DigitalEar is \$34.26. b. Using absorption costing the budgeted manufacturing cost per unit for esch of DigitalEar's four hearing aid devices can be calculated as follows Digital fian Hearing Aid: A2? Budgeted manufacturing cost per unit = Direct materials per unit + (Direct labor hours per unit Direct labor cost per hour) - (Direct labor hours per unit Manufacturing c direct labor hover )$500+(2.0$11.05)+(2.0534.26)=$500+$22.10+566.52=$590.62 Digital Ear Hearing Aid: 845 Digital Ear Hearing Aid: B45 budgeted manufacturing cost per unit = Direct materials per unit - (Divect Labor hous per unit x Direct labor cost per houn) + (Direct labor hours per unit x Manufocturing oveithead rate direct labor hovr )=5600+(2.8511.05)+(2.8534.26)=5600+530.94+595.93=$726.87 Bigital Pro iledring Aid: Cz4 Budgeted manufacturing cost per unit = Direct materials per unit + (Direct labor hours per unit x Direct labor cost per hour) + (Direct labor hours per unit Manufacturing oveithead rate direct labor houn =$700+(3.0511.05)+(3.0534.26)=$700+$33.15+5102.78=$835.93 Grect labor houn +5700+(3.0511.05)+(3.0534.26)+5700+$33.15+510278=$33593 Digital Super Hearing Aid, pas Eudgeted manulocturing cost per unt = Direct materials pee unit - (Direct labor hours per unit x Birea labor cost per houn) + (Direct labor hours per unit x Manufacturing oyeibead rate per deect labor houf =$1000+(3.5311.05)+(355)429)51000+531.69+5119915115859 Overhead Rate for Multiple Products and Over/Under-Absorbed Overhead DigitalEar invented and patented a new digital behind-the-ear hearing aid with adaptive noise reduction and automatic feedback cancellation. DigitalEar produces four different models of its DigitalEar device. The following table summarizes the planned production levels, costs, and selling prices for the four DigitalEar devices for this year: DigitalEar allocates both fixed and variable manufacturing overhead to the four devices using a single overhead rate, which includes both fixed and variable manufacturing overhead. The number of direct labor hours in each device is used as the allocation base for assigning overhead to hearing aids. Budgeted volume measured using direct labor hours is calculated using the budgeted sales of each device. Vriable manufacturing overhead is budgeted at $12.00 per direct labor hour and fixed manufacturing overhead is budgeted this year at $2,157,000. Required: a. Calculate DigitalEar's budgeted manufacturing overhead rate per direct labor hour for this year. b. Using absorption costing, calculate the budgeted manufacturing cost per unit for each of DigitalEar's four hearing aid devices: c. During the year, actual manufacturing overhead incurred (fixed plus variable) was $3,110,000. and the actual number of direct labor hours used producing the four hearing aids was. Calculate the over-or under-absorbed overhead DigitalEar for this year: d. Assuming that the entire over-or under-absorbed overhead you calculated in part (c) is written off to cost of goods sold, does this write-off increase or decrease net income before taxes? Explain
