Requirement -a |
Predetermined Overhead Rate= Expected Overhead cost/ Estimated Production Unit |
=(168000/(4800+7200+3200+7200))= $7.50 per Unit |
Requirement -b | |||
Allocation of Overhead Cost - Benson Corporation | |||
Month | Unit (a) |
Overhead Rate (b) |
Allocated Cost (aXb) |
Jan | 4800 | $7.50 | $36,000.00 |
Feb | 7200 | $7.50 | $54,000.00 |
Mar | 3200 | $7.50 | $24,000.00 |
Apr | 7200 | $7.50 | $54,000.00 |
Requirement -C | ||||
Computation of Total Cost per Unit | ||||
Month | Jan | Feb | Mar | Apr |
No. of Unit | 4800 | 7200 | 3200 | 7200 |
Expected Cost | ||||
Overhead | $36,000.00 | $54,000.00 | $24,000.00 | $54,000.00 |
Direct cost ( No of Unit X 13) | $62,400.00 | $93,600.00 | $41,600.00 | $93,600.00 |
Total Cost | $98,400.00 | $147,600.00 | $65,600.00 | $147,600.00 |
Cost per Unit (Total Cost/ No. of Unit) | $20.50 | $20.50 | $20.50 | $20.50 |
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Benson Corporation expects to incur indirect overhead costs of $168,000 per month and direct manufacturing costs...
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