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Exerclse 17.4 (Static) Overhead Cost Drivers; Determination and Use of Unit Cost (LO17-3, LO17-6) Safe-Haul manufactures custom traller equipment. In June, the compary bullt 400
Exerclse 17.4 (Static) Overhead Cost Drivers; Determination and Use of Unit Cost (LO17-3, LO17-6) Safe-Haul manufactures custom traller equipment. In June, the compary bullt 400 utillty trallers for Cole's Traller Sales. Assembly of these units required 1,200 hours of dlrect labor at a cost of $30,000, direct materlals costing $333,000, and 600 hours of machine time. Based on an analysis of overhead costs at the beginning of the year, overhead is applled to utillty traller Jobs using the following formula. Overhead =150% of Direct Labor Cost +$120 per Machine Hour a. Compute the total amount of overhead cost applied to the 400 utlitity trallers. b. Compute the per-unit cost of manufacturing each traller in this particular job. f. Compute the total gross profit that will result from manufacturing these trallers for Cole's Traller Sales at a selling price of $2,100 aplece
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