Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Please help to explain the correct formulas. Best Corporation expects to incur indirect overhead costs of $182,000 per month and direct manufacturing costs of $11
Please help to explain the correct formulas.
Best Corporation expects to incur indirect overhead costs of $182,000 per month and direct manufacturing costs of $11 per unit. The expected production activity for the first four months of 2017 is as follows:
Estimated production in units January February March 5,000 8,700 4.800 April 7,500 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 b. Allocate overhead costs to each month using the overhead rate computed in Requirement a c. Calculate the total cost per unit for each month using the overhead allocated in Requirement b. Complete this question by entering your answers in the tabs below. Required A Required B Required Calculate the total cost per unit for each month using the overhead allocated in Requirement b. January 5,000 February 8,700 March 4,800 April 7,500 Month Number of units Expected cost Overhead Direct costs Total cost Cost per unit $ 35,000 $ 55,000 90,000 $ 18 S 60,900 $ 95,700 156,600 $ 18 S 33,600 $ 52,800 86,400 $ 18 S 52,500 82,500 135,000 18 % $ Required B Required c ) *Red text indicates no response was expected in a cell or a formula-based calculation is incorrect; no points deductedStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started