Total Estimated overhead cost over 4 months($124,000*4) | $ 4,96,000 | |||
Estiamted production over 4 months(5400+8900+4200+6300) | 24800 | units | ||
Predtermined Overhead Rate($496,000/24800) | $ 20.00 | per unit | ||
Month | Allocated Cost | |||
January(5400 units*$20) | $ 1,08,000 | |||
February(8900 units*$20) | $ 1,78,000 | |||
March(4200 units*$20) | $ 84,000 | |||
April(6300 units*$20) | $ 1,26,000 | |||
Total | $ 4,96,000 | |||
Month | January | February | March | April |
Number of units | 5400 | 8900 | 4200 | 6300 |
Expected Costs: | ||||
Overhead | $ 1,08,000 | $ 1,78,000 | $ 84,000 | $ 1,26,000 |
Direct Costs | $ 1,24,200 | $ 2,04,700 | $ 96,600 | $ 1,44,900 |
Total Costs | $ 2,32,200 | $ 3,82,700 | $ 1,80,600 | $ 2,70,900 |
Cost per unit | $ 43.00 | $ 43.00 | $ 43.00 | $ 43.00 |
Rooney Corporation expects to incur indirect overhead costs of $124,000 per month and direct manufacturing costs...
Campbell Corporation expects to incur indirect overhead costs of $163,150 per month and direct manufacturing costs of $23 per unit. The expected production activity for the first four months of the year are as follows. Estimated production in units January February March 4,800 8,600 4,600 April 7,100 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...
Rasmussen Corporation expects to incur indirect overhead costs of $80,000 per month and direct manufacturing costs of $12 per unit. The expected production activity for the first four months of the year are as follows. Estimated production in units January February March 6,000 7,000 3,000 April 4,000 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...
Adams Corporation expects to incur indirect overhead costs of $76,375 per month and direct manufacturing costs of $23 per unit. The expected production activity for the first four months of 2017 is as follows: January February March April Estimated production in units 4,800 7,400 3,600 7,700 Required 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. Allocate overhead costs to each month using the...
Benson Corporation expects to incur indirect overhead costs of $168,000 per month and direct manufacturing costs of $13 per unit. The expected production activity for the first four months of the year are as follows. January February March April Estimated production in units 4,800 7,200 3,200 7,200 nts Book Hint 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...
Thornton Corporation expects to incur indirect overhead costs of $171,825 per month and direct manufacturing costs of $12 per unit. The expected production activity for the first four months of the year are as follows. January February March 4,500 7,200 4,500 April 7,500 Estimated production in units 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...
Thornton Corporation expects to incur indirect overhead costs of $171,825 per month and direct manufacturing costs of $12 per unit. The expected production activity for the first four months of the year are as follows. January February March April Estimated production in units 4,500 7,200 4,500 7,500 Required 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. Allocate overhead costs to each month using...
Exercise 4-3A Allocating overhead cost to accomplish smoothing LO 4-2 Campbell Corporation expects to incur indirect overhead costs of $145,200 per month and direct manufacturing costs of $22 per unit. The expected production activity for the first four months of 2017 is as follows: Estimated production in units January February March 4,400 7,600 4,800 April 7,400 Required a. Calculate a predetermined overhead rate based on the number of units of product expected to be made during the first four months...
Exercise 4-3A Allocating overhead cost to accomplish smoothing LO 4-2 Campbell Corporation expects to incur indirect overhead costs of $145,200 per month and direct manufacturing costs of $22 per unit. The expected production activity for the first four months of 2017 is as follows: Estimated production in units January February March 4,400 7,600 4,800 April 7,400 Required a. Calculate a predetermined overhead rate based on the number of units of product expected to be made during the first four months...
Rundle Corporation estimated its overhead costs would be $22,400 per month except for January when it pays the $216,300 annual insurance premium on the manufacturing facility. Accordingly, the January overhead costs were expected to be $238,700 ($216,300 + $22,400). The company expected to use 7,800 direct labor hours per month except during July, August, and September when the company expected 9,600 hours of direct labor each month to build inventories for high demand that normally occurs during the Christmas season....
Franklin Corporation estimated its overhead costs would be $22,800 per month except for January when it pays the $148,230 annual insurance premium on the manufacturing facility. Accordingly, the January overhead costs were expected to be $171,030 ($148,230 $22,800). The company expected to use 7600 direct labor hours per month except during July, August, and September when the company expected 9,900 hours of direct labor each month to build inventories for high demand that normally occurs during the Christmas season. The...