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Help Save & Exit Submit 12to Gray Company uses a plantwide overhead rate with ma

ID: 2514163 • Letter: H

Question

Help Save & Exit Submit 12to Gray Company uses a plantwide overhead rate with machine hours as the allocation base. Use the following information to solve for the amount of machine hours estimated per unit of product Q. $ 14 $120,000 56 Direct material cost per unit of Q 011139Total estimated manufacturing overhead Total cost per unit of Total estimated machine hours Direct labor cost per unit of Q 248,800 MH $28 Multiple Choice 0.75 MH per unit of Q 0.50 MH per unit of Q 47 MH per unit of Q |2 of 16 Next .>

Explanation / Answer

Correct option is D

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Paticulars

Amount

Total estimated Manufacturing overhead

120000

Total estimated machine hours

240000

Manu O/H per hour = 120000/240000

                        0.50

Total cost per unit of Q

56

Less Direct Material cost

14

Less direct labour cost

28

Overhead cost per unit

14

No of machie hours per unit = 14/.5

28

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Paticulars

Amount

Total estimated Manufacturing overhead

120000

Total estimated machine hours

240000

Manu O/H per hour = 120000/240000

                        0.50

Total cost per unit of Q

56

Less Direct Material cost

14

Less direct labour cost

28

Overhead cost per unit

14

No of machie hours per unit = 14/.5

28