apter 7 A. Using the following Information, determine the overhead to be applied

Question

apter 7 A. Using the following Information, determine the overhead to be applied to each activity. Estimated Product A Product B Total Predetermined MOH MOH Activi Inspection hours Setup hours Machine hours Activity Activity Activity. Application rate $1,000 $2,000 $3,000 150 50 400 100 per hour 600 200 per set up per hour B. What is the MOH applied to each activity and in total for Products A & B? Product A MOH Applied Product B MOH Applied Inspection hours Setup hours Machine hours Total MOH C. What would be the MOH applied per unit for product A if there are 50 units produced of Product A? D. What would be the MOH applied per unit for product B if there are 25 units produced of Product B?

Explanation / Answer

A) Table :

B) Calculate MOH applied :

C) manufacturing overhead applied per unit on product A = 2050/50=41 per unit

D) Manufacturing overhead applied per unit on product B = 3950/25 = 158 per unit

Activity Estimated MOH Product A Product B Total activity Predetermine MOH application rate inspection hours 1000 50 150 200 5 per hour Setup hours 2000 400 600 1000 2 pe setup Machine hours 3000 100 200 300 10 per hour

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