Bentley estimates manufacturing overhead of $3,095,400 for 2016 and will apply overhead to units produced based on 737,000 machine hours. During 2016, Bentley used $1,620,000 of raw materials, paid $4,983,800 of direct labor, generated 732,000 machine hours, and produced 2,170,000 units. Required: Calculate Bentley's predetermined overhead rate and cost per unit of production for 2016.
Bentley estimates manufacturing overhead of $3,095,400 for 2016 and will apply overhead to units produced based on 737,000 machine hours. During 2016, Bentley used $1,620,000 of raw materials, paid $4,983,800 of direct labor, generated 732,000 machine hours, and produced 2,170,000 units. Required: Calculate Bentley's predetermined overhead rate and cost per unit of production for 2016.
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter3: Process Cost Systems
Section: Chapter Questions
Problem 4E: The cost accountant for River Rock Beverage Co. estimated that total factory overhead cost for the...
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
Transcribed Image Text:Bentley estimates manufacturing overhead of $3,095,400 for 2016 and will apply overhead to units
produced based on 737,000 machine hours. During 2016, Bentley used $1,620,000 of raw materials,
paid $4,983,800 of direct labor, generated 732,000 machine hours, and produced 2,170,000 units.
Required:
Calculate Bentley's predetermined overhead rate and cost per unit of production for 2016.
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