Calculate traditional manufacturing overhead allocation rate, Accounting Basics

The following was taken from the records of the Frederic Products Company for 200X: 5) y for 200X:

Total estimated manufacturing overhead cost for the year is $288,750

Total estimated direct labor hours for the year is 16,500

Product                                                  Alpha                    Zeta

Units Produced                                        1,500                     7,500

Direct material cost per unit                        $10                        $22

Direct labor cost per unit                           $14                         $28

Direct labor hours per unit                          1                              2

Required:

A. Calculate the traditional manufacturing overhead allocation rate using direct labor hours per unit as the allocation base. Show calculations to support your answer.

B. Calculate the total cost per unit for 200X for each product using the traditional overhead allocation. Show calculations to support your answer.

Posted Date: 3/20/2013 4:11:18 AM | Location : United States







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