Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Jordan Corporation estimated its overhead costs would be $23.200 per month except for January when it pays the $12200 annua insurance premium on the manufacturing

image text in transcribed
image text in transcribed
Jordan Corporation estimated its overhead costs would be $23.200 per month except for January when it pays the $12200 annua insurance premium on the manufacturing facility. Accordingly, the January overhead costs were expected to be $135.400 ($112 23,200) The company expected to use company expected 9,400 hours of direct labor each month to build inventories for high demand that normally occurs during the Christmas season. The company's actual direct labor hours were the same as the estimated hours. The company made 3,600 units of 7.200 direct labor hours per month except during July, August, and September when the product in each month except July, August, and September, in which it produced 4700 units each month. Direct labor costs $24.70 per unit, and direct materials costs were $10.40 per unit Required a. Calculate a predetermined overhead rate based on direct labor hours. b. Determine the total allocated overhead cost for January, March, and August c. Determine the cost per unit of product for January, March, and August. d. Determine the selling price for the product, assuming that the company desires to earn a gross margin of $20.90 per unit. Complete this question by entering your answers in the tabs below. Req A Reqs B to D Calculate a predetermined overhead rate based on direct labor hours. (Round your answer to 2 decimal places.) rate per labor hour Reqs B to D >

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting IFRS Principles

Authors: Ilse Lubbe, Goolam Modack, Alex Watson

4th Edition

0199049238, 9780199049233

More Books

Students also viewed these Accounting questions