Question
Kenneth Corporation expects to incur indirect overhead costs of $154,375 per month and direct manufacturing costs of $14 per unit. the expected production activity for
Kenneth Corporation expects to incur indirect overhead costs of $154,375 per month and direct manufacturing costs of $14 per unit. the expected production activity for the first four months of 2013 is as follows. january february march april estimated production in units 5,000 8,500 4,400 6,800
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.
allocate overhead costs to each month using the overhead rate computed in requirement a.
Jan-allocated cost
Feb-allocated cost
march- allocated cost
april allocated cost
total-
c. calculate the total cost per unit for each month using the overhead allocated in requirement b
number of units- 5000, 8500, 4400, 6800
expected cost-over head-(per month)
direct costs-(per month)
total cost-(per month)
cost per unit- (per month)
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