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Thornton Corporation expects to incur indirect overhead costs of $171,825 per month and direct manufacturing costs of $12 per unit. The expected production activity for
Thornton Corporation expects to incur indirect overhead costs of $171,825 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 4,500 7,200 4,500 April 7,500 Estimated production in units 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 Required B Required C Calculate the total cost per unit for each month using the overhead allocated in Requirement b. January 4,500 February 7,200 March 4 ,500 April 7,500 Month Number of units Expected cost Overhead Direct costs Total cost Cost per unit 1 $ P $ 1 $ 29 $ 12 41 s 41 $ 29 $ 12 41 s 29,520 $ 29 $ 12 41 $ 184,500 $ 29 12 41 307,500
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