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ID: 2565010 • Letter: I
Question
ignment/takeAssignmentMain.doinvoerassignments&takeAssignmentSessionlocator; assignment-take&inprogress; false Units produced per year Direct labor hours Machine hours Hooked Straight 200,000 2,000,000 10,000 40,000 10,000 70,000 Total overhead costs equal $400,000. Randy applies overhead based on direct labor hours Required If required, round your answers to the nearest cent. A Calculate the plantwide overhead rate based on direct labor hours per direct labor hour B. Using the plantwide overhead rate, calculate the overhead cost per unit for hooked sticks. x per unit C. Using the plantwide overhead rate, calculate the overhead cost per unit for strwight sticks per unit D. Recalculate the plantwide overhead rate assuming Randy Company applies overhead based on machine hours 5 per machine hour E. Assuming the prime costs for hooked sticks $47, what is the total cost using the overhead rate developed in part A? F. Assuming the prime costs for hooked sticks $.47, what is the total cost using the overhead rate developed in part D? 9 0 8 5 1Explanation / Answer
Answer B.
Plantwide Overhead Rate = $8.00 per direct labor hour
Number of Direct labor hours = 10,000
Number of units produced = 200,000
Overhead assigned = Plantwide Overhead Rate * Number of Direct labor hours
Overhead assigned = $8.00 * 10,000
Overhead assigned = $80,000
Overhead Cost per unit = $80,000 / 200,000
Overhead Cost per unit = $0.40
Answer C.
Plantwide Overhead Rate = $8.00 per direct labor hour
Number of Direct labor hours = 40,000
Number of units produced = 2,000,000
Overhead assigned = Plantwide Overhead Rate * Number of Direct labor hours
Overhead assigned = $8.00 * 40,000
Overhead assigned = $320,000
Overhead Cost per unit = $320,000 / 2,000,000
Overhead Cost per unit = $0.16
Answer E.
Overhead Cost per unit = $0.40
Total Cost per unit = Prime Cost + Overhead Cost per unit
Total Cost per unit = $0.47 + $0.40
Total Cost per unit = $0.87
Total Cost = $0.87 * 200,000
Total Cost = $174,000
Answer F.
Plantwide Overhead Rate = $5.00 per machine hour
Number of Direct labor hours = 10,000
Number of units produced = 200,000
Overhead assigned = Plantwide Overhead Rate * Number of Machine hours
Overhead assigned = $5.00 * 10,000
Overhead assigned = $50,000
Overhead Cost per unit = $50,000 / 200,000
Overhead Cost per unit = $0.25
Total Cost per unit = Prime Cost + Overhead Cost per unit
Total Cost per unit = $0.47 + $0.25
Total Cost per unit = $0.72
Total Cost = $0.72 * 200,000
Total Cost = $144,000
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