Exercise 4-3A Allocating overhead cost to accomplish smoothing Rasmussen Corporation expects to incur indirect overhead costs of $80,000 per month and direct manufacturing costs of $12 per unit. The expected production activity for the first four months of 2017 is as follows: Flashcards January FebruaryMarch April Estimated production in units 6,000 7,000 3,0004,000 Required Calculate a predetermined overhead rate based on the number of units of product expected to be made during the first four months of the year. Allocate overhead costs to each month using the overhead rate computed in Requirement a. Calculate the total cost per unit for each month using the overhead allocated in Requirement b. a. b. e. 1-3 Month February MarchAp AprilTotal a. January number of units Allocation rate Allocation rate 7,000 3,000 4,000 20,000 TL cost to be allocated / Cost driver b Assign the cost by multiplying the allocation rate by the weight of the base (cost driver) for each division Month Janua February March April Total Allocation Rate x Weight of Base = Allocated Cost CComputation of total cost per unit Month Number of units (a) Expected Cost JanuaryFebruary March April 6,000 7,000 3,000 4,000 Overhead (b) Direct costs (c ax$) Total cost (d)