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eBook Calculator Applied Overhead and Unit Overhead Cost: Plantwide Rates Seco, Inc., produces two types of clothes dryers: deluxe and regular. Seco uses a plantwide
eBook Calculator Applied Overhead and Unit Overhead Cost: Plantwide Rates Seco, Inc., produces two types of clothes dryers: deluxe and regular. Seco uses a plantwide rate based on direct labor hours to assign its overhead costs. The company has the following estimated and actual data for the coming year Estimated overhead $2,000,000 Expected activity 50,000 Actual activity (direct labor hours): Deluxe dryer 10,000 Regular dryer 40,000 Units produced Deluxe dryer 20,000 Regular dryer 200,000 Required: 1. Calculate the predetermined plantwide overhead rate, using direct labor hours. per hour Calculate the applied overhead for each product, using direct labor hours. Applied overhead Deluxe Regular 2. Calculate the overhead cost per unit for each product. Next Check My Work Save and Exit Submit Assignment for Grading 40,000 s produced: Deluxe dryer 20,000 Regular dryer 200,000 Required: 1. Calculate the predetermined plantwide overhead rate, using direct labor hours. per hour Calculate the applied overhead for each product, using direct labor hours. Applied overhead Deluxe Regular 2. Calculate the overhead cost per unit for each product. Overhead Cost Deluxe per unit Regular per unit 3. What if the deluxe product used 20,000 hours (to produce 20,000 units) instead of 10,000 hours (total expected hours remain the same)? Calculate the effect on the profitability of this product line if all 20,000 units are sold. Profits would by s Check My Work Next > Save and Ext Submit Assignment for Grading
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