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Question 3: Abdur Rahman has received an order from the neighbor land of Fun SUAND Company for the sea dairy product he makes. Fiji Island
Question 3: Abdur Rahman has received an order from the neighbor land of Fun SUAND Company for the sea dairy product he makes. Fiji Island Co asked for 5,000 units of the dairy products To make the product, Abdur Rahman needs 55 of direct materials per unit, 15 Minutes to make one without payment is $12. For the purpose of calculating overhead, the company has estimated 30.000 direct laborou would be needed this year. Estimated fixed manufacturing overhead $150,000 and variable manufacture overhead is $4 per hour. During the season, the actual manufacturing overhead of Abdur Rahman Company w $250,000 with total 32,000 direct labor. Required: 3a). Determine the product costs per unit also total product cost for the order of Fiy company 6.Marks 36). Why companies use predetermined overhead costs rather than actual manufacturing overhead costs to apply overhead to jobs. [4 Marks ]
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