Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

my Rundle Corporation estimated its overhead costs would be $23.600 per month except for January when it pays the $174.450 annual insurance premium on the

image text in transcribed
image text in transcribed
my Rundle Corporation estimated its overhead costs would be $23.600 per month except for January when it pays the $174.450 annual insurance premium on the manufacturing facility. Accordingly, the January overhead costs were expected to be 5198,050 (5174,450 + $23,600). The company expected to use 8,000 direct labor hours per month except during July August, and September when the company expected 9,900 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 4.000 units of product in each month except July, August, and September in which it produced 4,950 units each month. Direct labor costs were $24.80 per unit, and direct materials costs were $11.80 per unit Required o. 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 eam a gross margin of $20.10 per unit. Complete this question by entering your answers in the tabs below. Rega Reg B to D Calculate a predetermined overhead rate based on direct labor hours. (Round your anmwer to 2 decimal places.) Predetermined overhead rate per labor hour Req A Req B to D Determine the total allocated overhead cost, the cost per unit of product and the selling price for the product for January March, and August. Assume that the company desires to earn a gross margin of $20.10 per unit. (Do not round intermediate calculations. Round "Cost per unit" and "Selling price per unit" to 2 decimal places. Round your total allocated overhead cost to nearest whole dollar.) Show less January March August Total allocated overhead cost Cost per unit Selling price per unit

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

Authors: Anne Britton, Chris Waterston

4th Edition

0273703609, 978-0273703600

More Books

Students also viewed these Accounting questions

Question

=+1. Do you have insurance?

Answered: 1 week ago

Question

=+ 2. Do you have a license and do you have insurance?

Answered: 1 week ago