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Benson Corporation expects to incur indirect overhead costs of $168,000 per month and direct manufacturing costs of $13 per u
eter 4 Homework Assignment Saved 1 Required a. Calculate a predetermined overhead rate based on the number of units of p of t
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Answer #1
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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