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Exercise 4-3A Allocating overhead cost to accomplish smoothing LO 4-2 Campbell Corporation expects to incur indirect overhead costs of $145,200 per month and direct manufacturing
Exercise 4-3A Allocating overhead cost to accomplish smoothing LO 4-2 Campbell Corporation expects to incur indirect overhead costs of $145,200 per month and direct manufacturing costs of $22 per unit. The expected production activity for the first four months of 2017 is as follows: Estimated production in units January February March 4,400 7,600 4,800 April 7,400 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 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 April January 4,400 February 7,600 March 4,800 Number of units 7,400 Expected cost Overhead Direct costs Total cost Cost per unit
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