P7.33 Predetermined plantwide overhead rate; different periods; pricing: manufacturer LO7.3 Star Electronics Lid calculates its predetermined overhead rate on a quarterly basis. The following estimates 7.7 were made for next year. Estimated manufacturing Estimated direct Quarterly predetermined overhead overhead labour hours rate (per direct labour hour) First quarter $200 000 25 000 Second quarter 160 000 16 000 Third quarter 100 000 12 500 Fourth quarter 140 000 14 000 Total $600 000 67 500 The firm's main product, part number A200, requires $200 of direct material and 20 hours of direct labour per unit. The labour rate is $30 per hour. Required: 1. Construct an Excel spreadsheet to: (a) Calculate the firm's quarterly predetermined overhead rate for each quarter of next year. (b) Determine the cost of one unit of part A200 if it is manufactured in: (1) January (i]) April. 2. Suppose the company's pricing policy calls for a 10 per cent markup on cost. Use your spreadsheet to calculate the price to be charged for a unit of part A200 if it is produced in: (a) January (b) April. 3. Use your spreadsheet to calculate the company's predetermined overhead rate for next year if the rate is calculated annually. 4. Based on your answer to requirement 3, what is the cost of a unit of part A200 if it is manufactured in: (a) January (b) April? 5. What is the price of a unit of part A200 if the predetermined overhead rate is calculated annually? 6. Which approach would you recommend to management-quarterly overhead rates or an annual rate? Explain your