Troy Electronics Company calculates its predetermined overhead rate on a quarterly basis The following estimates were made for the current year Estimated Manufacturing Overhead Estimated Direct Labor Hours Quarterly Predetermined Overhead Rate (per direct labor hour) First quarter $ 100,000 25,000 Second quarter 80,000 16,000 Third quarter 37,500 12,500 Fourth quarter 84,000 14,000 Total $ 301,500 67,500 The firms main product, part number A200, requires $200 of direct material and 20 hours of direct labor per unit The labor rate is $20 per hour Required 1 Calculate the firms quarterly predetermined overhead rate for each quarter Determine the cost of one unit of part number A200 if it is manufactured in January versus April (Q9 Suppose the companys pricing policy calls for a 10 percent markup over cost Calculate the price to be charged for a unit of part number A200 if it is produced in January versus April 4 Calculate the companys predetermined overhead rate for the year if the rate is calculated annually (Round your answer to 2 decimal places) 5 Based on your answer to requirement 4, what is the cost of a unit of part number A200 if it is manufactured in January In April (Round intermediate calculations and final answers to 2 decimal places ) What is the price of a unit of part A200 if the predetermined overhead rate is calculated annually (Round intermediate calculations and final answers to 2 decimal places )

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Posted on Jul 18, 2024

Troy Electronics Company calculates its predetermined overhead rate on a quarterly basis. The following estimates were made for the current year.

	Estimated Manufacturing Overhead			Estimated Direct-Labor Hours		Quarterly Predetermined Overhead Rate (per direct-labor hour)
First quarter		$	100,000		25,000		?
Second quarter			80,000		16,000		?
Third quarter			37,500		12,500		?
Fourth quarter			84,000		14,000		?
Total		$	301,500		67,500

The firms main product, part number A200, requires $200 of direct material and 20 hours of direct labor per unit. The labor rate is $20 per hour.

Required: 1. Calculate the firms quarterly predetermined overhead rate for each quarter.

Determine the cost of one unit of part number A200 if it is manufactured in January versus April. (Q9
Suppose the companys pricing policy calls for a 10 percent markup over cost. Calculate the price to be charged for a unit of part number A200 if it is produced in January versus April.
4. Calculate the companys predetermined overhead rate for the year if the rate is calculated annually. (Round your answer to 2 decimal places).
5. Based on your answer to requirement 4, what is the cost of a unit of part number A200 if it is manufactured in January? In April? (Round intermediate calculations and final answers to 2 decimal places.)
What is the price of a unit of part A200 if the predetermined overhead rate is calculated annually? (Round intermediate calculations and final answers to 2 decimal places.)