Question

Date: 7/31/2020 Item Description Prepared by: Product Description Overhead Cost, $0.121, 38.3% Material Cost, $0.141, 44.5% Sales unit in one pack Banana Bread Units In production Batch 12.00 Production Specifications 19,200 1,600 Standard units in production run Standard sales packages In production run Cost Allocation Direct Labor, $0.054, 17.1% STD Usage/ Sales Unit Ingredients UOM 272 gram 4 1-Flour 2-Baking Soda 3-Salt 4-Butter 5-Brown Sugar 6-Eggs 7-Banana 4 Ingredients Description 1-Flour 2-Baking Soda 3-Salt 4-Butter 5-Brown Sugar 6-Eggs 7-Banana Purchase Cost Per Unit of measure $0.002 $0.002 $0.001 $0.009 $0.002 $0.124 $0.047 gram gram gram gram 1 Egg 1 banana Material cost per unit $0.05 $0.00 $0.00 $0.04 $0.02 $0.02 $0.01 57 150 2. 2 Total $0.141 Number of Employees 10 Hours in work shift 8 Hourly Rate $13.000 Standard Labor cost $1,040.00 Standard Units 19,200 Labor Cost Per Unit $0.054
one year, 365 days

Answer 1

Projected variable overhead for year = overhead cost per unit of output X Number of daily outputs X 365 days = $ 0.121 X 19,200 X 365 = $ 847,968

Projected direct labor hours required for production year = Number of workers working X Hours worked in a shift X 365 = 10 X 8 X 365 = 292,00 labor hours

Predetermined variable factory overhead rate = Projected variable overhead / Projected direct labor hours = $ 847,968 / 29,200 = $ 29.04