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Freeze Frame, Inc. produces cameras that require three processes, A, B, and C, to complete. Digital camera model #789 is the best-selling of all the
Freeze Frame, Inc. produces cameras that require three processes, A, B, and C, to complete. Digital camera model #789 is the best-selling of all the many types of cameras produced. Information related to the 550,000 units of digital camera model #789 produced annually is shown below. $450,000 Direct materials Direct labor Department A (7,000 DLH x $21 per DLH) Department B (25,000 DLH x $19 per DLH) Department C (10,000 DLH X $26 per DLH) Machine Hours Department A Department B Department $147,000 $475,000 $260,000 42,000 MH 23,000 MH 38.000 MH Freeze Frame's total expected overhead costs and related overhead data are shown below: Direct labor hours Machine hours Manufacturing overhead costs Department A 90,000 DLH 67,500 MH $540,000 Department B Department 75.000 DLH 42,000 DLH 135,000 MH 53,200 MH S675,000 $399,000 a. Compute a departmental overhead rate for department A based on direct labor hours. b. How much overhead is associated with model 789 from department A? c. Compute a departmental overhead rate for department B based on direct labor hours. d. How much overhead is associated with model 789 from department B? e. Compute a departmental overhead rate for department C based on direct labor hours. f. How much overhead is associated with model 789 from department C? g. What is the per unit cost of the 550,000 units of model 789
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