Solution-Calculate a predetermined overhead rate

Calculate a predetermined overhead rate

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Reference no: EM131198451

Plantwide Rates

Nabors Company produces two types of stereo units: deluxe and regular. For the most recent year, Nabors reports the following data:

Budgeted overhead	$180,000
Expected activity (in direct labor hours)	50,000
Actual activity (in direct labor hours)	51,000
Actual overhead	$200,000
	Deluxe	Regular
Units produced	5,000	50,000
Prime costs	$40,000	$300,000
Direct labor hours	5,000	46,000

Required

1. Calculate a predetermined overhead rate based on direct labor hours.

2. What is the applied overhead?

3. What is the under- or overapplied overhead?

4. Calculate the unit cost of each stereo unit.

Reference no: EM131198451

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Calculate a predetermined overhead rate

Reference no: EM131198451

Reference no: EM131198451

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