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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

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.

  1. Determine the cost of one unit of part number A200 if it is manufactured in January versus April. (Q9
  2. 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.
  3. 4. Calculate the companys predetermined overhead rate for the year if the rate is calculated annually. (Round your answer to 2 decimal places).
  4. 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.)
  5. 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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