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Problem 12-18A (Algo) Allocation to accomplish smoothing LO 12-1, 12-2, 12-3 Franklin Corporation estimated its overhead costs would be $23.500 per month except for January
Problem 12-18A (Algo) Allocation to accomplish smoothing LO 12-1, 12-2, 12-3 Franklin Corporation estimated its overhead costs would be $23.500 per month except for January when it pays the $128.820 annual Insurance premium on the manufacturing facility. Accordingly, the January overhead costs were expected to be $152.320 $128,820 - $23.500). The company expected to use 7900 creer labor hours per month except during July August, and September when the company expected 9700 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 3950 units of product in each month except July August, and September, in which it produced 4.850 units each month Director costs were $2500 per unit and direct materials costs were $10.30 petun Required a. Calculate a predetermined overhead rate based on direct labor houts b. Determine the total located overhead cost for January, March, and August c. Determine the cost per unit of product for January March, and August 4. Determine the selling price for the product, assuming that the company desires to earn a grous margin of $2160 per unit Complete this question by entering your answers in the tale below to Clos predetermined overhead rate based on direct labor hours (Hound your answer to 2 decimal place) e tutte Ree BD >
E CH 88F Mot DELL Rog A ReqBt0 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 $21.60 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 August Total allocated overhead cost Cost per unit Selling price per unit
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