Exercise 4-3A (Algo) Allocating overhead cost to accomplish smoothing LO 4-2 Rundle Corporation expects to incur indirect overhead costs of $82,250 per month and direct manufacturing costs of $11 per unit. The expected production activity for the first four months of the year are as follows. Estimated production in units January February March 4,600 7,700 3,600 April 7,600 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 f months of the year. Predetermined overhead rate per unit Rundle Corporation expects to incur indirect overhead costs $82,250 per month and direct manufacturing costs of $11 per unit. The expected production activity for the first four months of the year are as follows. Estimated production in units January February March 4,600 7,700 3,600 April 7,600 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 Allocate overhead costs to each month using the overhead rate computed in Requirement a. Month Allocated Cost January February March April Total Rundle Corporation expects incur indirect overhead costs of $82,250 per month and direct manufacturing costs of $11 per unit. The expected production activity for the first four months of the year are as follows. January February March April 7,700 3,600 7,600 Estimated production in units 4.600 made during the first four months of the year. Required a. Calculate a predetermined overhead rate based on the number of units of product expected to 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. January 4,600 February 7.700 March 3,600 April 7.600 Month Number of units Expected cost Overhead Direct costs Total cost Cost per unit
