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ID: 2578128 • Letter: S

Question

signment/takeAssignmentMain.do?invoker assignments&takeAssignmentSessionLocator; 4 Single Plantwide Factory Overhead Rate The total factory overhead for Urban Styles, Inc., is budgeted for the year at $2,375,000. Urban Styles manufactures two types of men's pants: jeans and khakis. The jeans and khakis each require five direct labor hours for manufacture. Each product is budgeted for 10,000 units of production for the year. When required, round all per unit answers to the nearest cent. a. Determine the total number of budgeted direct labor hours for the year. direct labor hours b. Determine the single plantwide factory overhead rate. per dih c.Determine the factory overhead allocated per unit for each product using the single plantwide factory overhead rate. Jeans Khakis per unit per unit 5:22 PM

Explanation / Answer

a) Total budgeted direct labour hours = (10000*2*5) = 100000 DLH

b) Single plantwide factory overhead rate = 2375000/100000 = 23.75 per DLH

C) Allocation of factory overhead rate :

Products Total overhead Overhead cost per unit Jeans (10000*5*23.75) 1187500 118.75 Khakis (10000*5*23.75) 1187500 118.75