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Wall Nuts. Inc. produces paneling which requires two processes, fabricating and finishing, to complete. Oak is the best selling of all the many types of
Wall Nuts. Inc. produces paneling which requires two processes, fabricating and finishing, to complete. Oak is the best selling of all the many types of paneling produced. Information related to the 40,000 units of oak paneling produced annually is shown below: Direct materials Direct labor* S380,000 $150,000 S562,000 24.000 Fabricating Department (6,000 DLH x $25 per DL Finishing Department (35.125 DLH x $16 per DLH Machine Hourso Fabricating Departmentp Finishing Department 32.000 MHP Sales Price S40.00+ Wall Nuts' total expected costs and related overhead data are show below. The company uses departmental overhead rates based on machine hours for the Fabricating Department and direct labor hours in the Finishing Department. Fabricating DepartmentFinishing Departmentp Direct labor hours* Machine hours* Manufacturing overhead costs 67,000 DLH 100,000 MH $450,000 170,000 DLH 80,000 MH Directions: Show detail calculations* 1. Calculate the Departmental Overhead Rates for the Fabricating & Finishing Departments 2. Calculate the total overhead applied to the oak paneling. 3. Calculate the oak paneling cost per unit (product cost per unit)- 4. Calculate the gross profit per unit for the oak paneling
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