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Fanning Corporation expects to incur indirect overhead costs of $121,800 per month and direct manufacturing costs of $16 per unit. The expected production activity for
Fanning Corporation expects to incur indirect overhead costs of $121,800 per month and direct manufacturing costs of $16 per unit. The expected production activity for the first four months of the year are as follows. Estimated production in units January February 5, 200 7,500 March 3,600 April 6,900 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. 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 March January 5,200 February 7,500 April 6,900 Number of units 3,600 Expected cost Overhead $ 109,200 $ 157,500 $ 75,600 $ 144,900 Direct costs Total cost $ 109,200 $ 157,500 $ 75,600 $ 144,900 Cost per unit
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