Homework Answers
1) Rate = estimated Cost/Estimated unit = 145200/24200 = 6 per unit
2) Allocated cost
| Month | Cost |
| January | 4400*6 = 26400 |
| February | 7600*6 = 45600 |
| March | 4800*6 = 28800 |
| April | 7400*6 = 44400 |
| Total | 145200 |
3) Calculate unit cost
| Month | January | February | March | April |
| Number of units | 4400 | 7600 | 4800 | 7400 |
| Expected cost | ||||
| Overhead | 26400 | 45600 | 28800 | 44400 |
| Direct cost | 96800 | 167200 | 105600 | 162800 |
| Total Cost | 123200 | 212800 | 134400 | 207200 |
| Cost per unit | 28 | 28 | 28 | 28 |
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