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Franklin Corporation expects to incur indirect overhead costs of $64,625 per month and direct manufacturing costs of $12 per unit. The expected production activity for
Franklin Corporation expects to incur indirect overhead costs of $64,625 per month and direct manufacturing costs of $12 per unit. The expected production activity for the first four months of 2017 is as follows: Estimated production in units January February March 4,100 8,300 3,400 April 7,700 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 first four months of the year. Predetermined overhead rate per unit 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 Required A Required B Required C. Calculate the total cost per unit for each month using the overhead allocated in Requirement b.. Month January February March April Number of units 4,100 8,300 Expected cost 3,400 7,700 Overhead Direct costs Total cost Cost per unit
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