Exercise $12-3$A $($Algo$)$ Allocating overhead cost to accomplish smoothing LO $12-2$

Campbell Corporation expects to incur indirect overhead costs of $$69,025$ per month and direct manufacturing costs of $$19$ per unit. The expected production activity for the first four months of the year are as follows.

$\backslash$table$[[,$January,February,March,April$],[$Estimated production in units,$4,900,8,300,4,400,7,500]]$

Required

a$.$ Calculate a predetermined overhead rate based on the number of units of product expected to be made during the first four months of the year.

b$.$ Allocate overhead costs to each month using the overhead rate computed in Requirement $a.$

c$.$ Calculate the total cost per unit for each month using the overhead allocated in Requirement $b.$

Complete this question by entering your answers in the tabs below.

Required $A$

Required C

Calculate a predetermined overhead rate based th the number of units of product expected to be made during the first four months of the year.

Predetermined overhead rate

per unit