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Vernon Corporation expects to incur indirect overhead costs of $116,100 per month and direct manufacturing costs of $11 per unit. The expected production activity for
Vernon Corporation expects to incur indirect overhead costs of $116,100 per month and direct manufacturing costs of $11 per unit. The expected production activity for the first four months of 2017 is as follows: Estimated production in units January February March 5,200 8,700 4,000 April 7,900 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 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 Required A Required B > Complete this question by entering your answers in the tabs below. Required A Required B Required C Allocate overhead costs to each month using the overhead rate computed in Requirement a. Allocated Cost Month January February March April Total Required A Required B Required C Calculate the total cost per unit for each month using the overhead allocated in Requirement b. January 5,200 February 8,700 March 4,000 April 7,900 Month Number of units Expected cost Overhead Direct costs Total cost Cost per unit Required B Required )
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