. Colonels uses a traditional cost system and estimates next year’s overhead will be $480,000, with the estimated cost driver of 240,000 direct labor hours. It manufactures three products and estimates these costs: Small Medium Large Units 32,000 12,000 4,000 Direct Material Cost $ 5 $ 8
2. Colonels uses a traditional cost system and estimates next year’s
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Small Medium Large Units 32,000 12,000 4,000 Direct Material Cost $ 5 $ 8 $ 9 Direct Labor Hours per Unit 4 6 10 |
PLEASE NOTE: Predetermined overhead rates will be rounded to two decimal places and shown with "$" and commas as needed (i.e. $1,234.56). The rates will include their proper label according to the textbook examples (no abbreviations).
PLEASE NOTE: Costs per unit will be rounded to two decimal places and shown with "$" and commas as needed (i.e. $12,345.67). The costs per unit will NOT include a label.
If the labor rate is $25 per hour, what is the per-unit cost of each product?
Predetermined overhead rate =
| Costs per Unit | Small | Medium | Large |
| Direct Material | ? | ? | ? |
| Direct Labor | ? | ? | ? |
| Overhead | ? | ? | ? |
| Total Cost per Unit | ? | ? | ? |
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