Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

only need help with cost per unit and selling price per unit (C&D) Solomon Corporation estimated Its overhead costs would be $23,300 per month except

only need help with cost per unit and selling price per unit (C&D) image text in transcribed
image text in transcribed
Solomon Corporation estimated Its overhead costs would be $23,300 per month except for January when it pays the $99,660 annual Insurance premium on the manufacturing facility. Accordingly, the January overhead costs were expected to be $122,960 ($99,660 + $23,300). The company expected to use 7,000 direct labor hours per month except during July August, and September when the company expected 9,100 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 3,500 units of product in each month except July, August, and September, in which it produced 4,550 units each month. Direct labor costs were $24.30 per unit, and direct materials costs were $10.90 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 $20.60 per unit. Complete this question by entering your answers in the tabs below. 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 $20.60 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 buru Hulu un 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 $20.60 per unit. Complete this question by entering your answers in the tabs below. Req A Reg 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 $20.60 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 $ 29,400 $ 29,400 August $ 38.220 Total allocated overhead cost Cost per unit Selling price per unit ? XPW 22

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

Gas And Mileage Log Book

Authors: TopStoxx Publishing

1st Edition

B08DDM8FVC, 979-8668873487

More Books

Students also viewed these Accounting questions

Question

What is a stock dividend?

Answered: 1 week ago

Question

Contrast variables that increase helping and aggressive behavior.

Answered: 1 week ago