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Ware Manufacturing Company produced 2,000 units of inventory in January Year 2. It expects to produce an additional 14,000 units during the remaining 11
Ware Manufacturing Company produced 2,000 units of inventory in January Year 2. It expects to produce an additional 14,000 units during the remaining 11 months of the year. In other words, total production for Year 2 is estimated to be 16,000 units. Direct materials and direct labor costs are $64 and $52 per unit, respectively. Ware expects to incur the following manufacturing overhead costs during the Year 2 accounting period. Production supplies Supervisor salary $ 20,000 160,000 Depreciation on equipment 75,000 Utilities 20,000 Rental fee on manufacturing facilities 45,000 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 2,000 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. Predetermined overhead rate per unit Ware Manufacturing Company produced 2,000 units of inventory in January Year 2. It expects to produce an additional 14,000 units during the remaining 11 months of the year. In other words, total production for Year 2 is estimated to be 16,000 units. Direct materials and direct labor costs are $64 and $52 per unit, respectively. Ware expects to incur the following manufacturing overhead costs during the Year 2 accounting period. Production supplies Supervisor salary $ 20,000 160,000 Depreciation on equipment Utilities 75,000 20,000 Rental fee on manufacturing facilities 45,000 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 2,000 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 2,000 units of product made in January. Indirect overhead costs Direct materials: Direct labor Total Allocated Cost < Prev 2 of 10 Next >
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