Exercise 4-3A (Algo) Allocating overhead cost to accomplish smoothing LO 4-2 Stuart Corporation expects to incur indirect overhead costs of $151,250 per month and direct manufacturing costs of $24 per unit. The expected production activity for the first four months of the year are as follows. Estimated production in units January February March 4,400 8,500 4,800 April 6,500 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 B Required C 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. Predetermined overhead rate per unit Stuart Corporation expects to incur indirect overhead costs of $151,250 per month and direct manufacturing costs of $24 per unit. The expected production activity for the first four months of the year are as follows. January February 4,400 8,500 March 4,800 April 6,500 Estimated production in units 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 B Required C Allocate overhead costs to each month using the overhead rate computed in Requirement a. Month Allocated Cost January February March April Total Stuart Corporation expects to incur indirect overhead costs of $151,250 per month and direct manufacturing costs of $24 per unit. The expected production activity for the first four months of the year are as follows. Estimated production in units January February March 4,400 8,500 4,800 April 6,500 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 B Required C Calculate the total cost per unit for each month using the overhead allocated in Requirement b. Month January February 8,500 March 4,800 April 6,500 4,400 Number of units Expected cost Overhead Direct costs Total cost Cost per unit
