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Single Plantwide Rate Nerdzy Computer Company wants to analyze the costs in its generic personal computer mass production process. Within its generic segment, Nerdzy
Single Plantwide Rate Nerdzy Computer Company wants to analyze the costs in its generic personal computer mass production process. Within its generic segment, Nerdzy manufactures four different computers: Standard Desktop, Standard Laptop, Premium Desktop, Premium Laptop. Nerdzy has asked you as an intern to evaluate the different methods for allocating the overhead to the products. Then, you will need to provide management with your recommendation of which method to use in the future. As mentioned in the previous problem, Nerday allocates costs based on the % of direct labor costs. La Calculate the predetermined overhead allocation rate. Predetermined OH allocation Rate of DL costs M 1.b Calculate how much Manufacturing overhead should be allocated to each segment and more specifically to each unit within the different segments. Standard Premium Standard Premium Standard Premium Standard Premium # of units 4,000 DM cost per unit $ 163 $ DL cost per unit $ 102 $ 2,100 212 $ 145 $ 6,200 160 $ 127 $ 3,548 265 MOH Cost Per Segment MOH Cost Per Unit 131 Total est. MOH 5 275,243 1.c Calculate the total manufacturing cost per unit. Requirements 1.a Calculate the predetermined overhead allocation rate. Standard Total Cost Per Unit 1.b Calculate how much Manufacturing overhead should be allocated to each segment and more specifically to each unit within the different segments. 1c Calculate the total manufacturing cost per unit. Premium Standard Premium
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