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The Fast & Furious Company produces two products: toy planes and toy race cars. They use departmental overhead rates for the two production departments: molding
The Fast & Furious Company produces two products: toy planes and toy race cars. They use departmental overhead rates for the two production departments: molding and finishing. Molding uses machine hours to assign overhead and Finishing uses direct labor hours. 50,000 planes and 250,000 race cars are produced. Please find the following data:
| Molding | Finishing | Total |
---|---|---|---|
Estimated Overhead | $250,000 | $100,000 | $350,000 |
Actual Overhead | $240,000 | $120,000 | $360,000 |
Expected Direct Labor Hours | | | |
Planes | 5,000 | 5,000 | 10,000 |
Race cars | 5,000 | 35,000 | 40,000 |
Expected Machine Hours | | | |
Planes | 17,000 | 3,000 | 20,000 |
Race cars | 3,000 | 7,000 | 10,000 |
Actual Direct Labor Hours | | | |
Planes | 4,500 | 5,300 | 10,000 |
Race cars | 5,500 | 34,500 | 40,000 |
Actual Machine Hours | | | |
Planes | 16,500 | 3,500 | 20,000 |
Race cars | 3,200 | 6,800 | 10,000 |
What is the overhead per unit for race cars?
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