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Vernon Manufacturing Company produced 2,500 units of inventory in January year 2. It expects to produce an additional 8,800 units during the remaining 11 months
Vernon Manufacturing Company produced 2,500 units of inventory in January year 2. It expects to produce an additional 8,800 units during the remaining 11 months of the year. In other words, total production for year 2 is estimated to be 11,300 units. Direct materials and direct labor costs are $83 and $57 per unit, respectively. Vernon expects to incur the following manufacturing overhead costs during the year 2 accounting period. Production supplies Supervisor salary Depreciation on equipment Utilities Rental fee on manufacturing facilities $ 6,000 190,000 128,000 34,000 249, 375 Required a. Combine the individual overhead costs into a cost pool and calculate a predetermined overhead rate assuming the cost driver is number of units. b. Determine the cost of the 2,500 units of product made in January. Complete this question by entering your answers in the tabs below. Required A Required B Combine the individual overhead costs into a cost pool and calculate a predetermined overhead rate assuming the cost driver is number of units. (Round your answer to 2 decimal places.) Predetermined overhead rate per unit Vernon Manufacturing Company produced 2,500 units of inventory in January year 2. It expects to produce an additional 8,800 units during the remaining 11 months of the year. In other words, total production for year 2 is estimated to be 11,300 units. Direct materials and direct labor costs are $83 and $57 per unit, respectively. Vernon expects to incur the following manufacturing overhead costs during the year 2 accounting period. Production supplies Supervisor salary Depreciation on equipment Utilities Rental fee on manufacturing facilities $ 6,000 190,000 128,000 34,000 249,375 Required a. Combine the individual overhead costs into a cost pool and calculate a predetermined overhead rate assuming the cost driver is number of units. b. Determine the cost of the 2,500 units of product made in January Complete this question by entering your answers in the tabs below. Required A Required B Determine the cost of the 2,500 units of product made in January. Allocated Cost Indirect overhead costs Direct materials Direct labor Total $ 0
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