Stuart Corporation expects to incur indirect overhead costs of $$152,600$ per month and direct manufacturing costs of $$12$ per unit. The

expected production activity for the first four months of the year are as follows.

January February March April

Estimated production $in$ units $4,800,7,500,3,500,6,000$

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

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.

Predetermined overhead rate

per unit