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Return to Problem 12-18A (Algo) Allocation to accomplish smoothing LO 12-1, 12-2, 12-3 Franklin Corporation estimated its overhead costs would be $23,600 per month except

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Return to Problem 12-18A (Algo) Allocation to accomplish smoothing LO 12-1, 12-2, 12-3 Franklin Corporation estimated its overhead costs would be $23,600 per month except for January when it pays the $160,950 annual insurance premium on the manufacturing facility. Accordingly, the January overhead costs were expected to be $184,550 ($160,950 $23,600). The company expected to use 7900 direct labor hours per month except during July, August , and September when the company expected 9200 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 3 950 units of product in each month except July August, and September, in which it produced 4.600 units each month Direct labor costs were $23.70 per unit, and direct materials costs were 510 10 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 $2100 per unit Complete this question by entering your answers in the tabs below. Req A Reg B to D Calculate a predetermined overhead rate based on direct labor hours. (Round you Predetermined overhead rate $ 8,66 per labor hour RA Req B to D Req A Req B to D Determine the total allocated overhead cost, the cost per unit of product and the s March, and August. Assume that the company desires to earn a gross margin of $ calculations. Round "Cost per unit" and "Selling price per unit to 2 decimal places. to nearest whole dollar.) Total allocated overhead cost Cost per unit Selling price per unit January March August $ 68,414 X $ 68,414 $ 76.672 X $ 51.12 X $ 5121 X $ 51.21 1$ 72.12 X $ 72.12 X $ 72.12 X

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