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Exercise 2-2 (Algo) Apply Overhead Cost to Jobs (LO2-2) Luthan Company uses a plantwide predetermined overhead rate of $22.70

Exercise 2-3 (Algo) Computing Total Job Costs and Unit Product Costs Using a Plantwide Predetermined Overhead Rate (LO2-3) Mi
Exercise 2-4 (Algo) Computing Total Job Costs and Unit Product Costs Using Multiple Predetermined Overhead Rates (LO2-4) Fick
Exercise 2-8 (Algo) Applying Overhead Cost; Computing Unit Product Cost (LO2-2, LO2-3) Newhard Company assigns overhead cost
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Answer #1

As per HOMEWORKLIB RULES, only the first question has to be solved. But I'm solving two for you :)

2.2 Manufacturing overhead applied

= Predetermined overhead rate * Actual direct labor hours

= 22.70 * 11,800 dlh

= 267,860

2.3. Number of direct labor hours = 240/16 per hour = 15 hours

Total manufacturing cost = Direct Materials + Direct Labor + Overhead applied

= 290 + 240 + (15*24)

= 890

Unit product cost = Total manufacturing cost/Units produced

= 890/50

= 17.80 per unit

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