Exercise 12-4A (Static) Pooling overhead cost LO 12-2 Ware Manufacturing Company produced 2,000 units of inventory in January, Year 2. It expects to produce an additional 14,000 uni during the remaining 11 months of the year in other words, total production for year 2 is estimated to be 16,000 units. Direct materi and direct labor costs are $64 and $52 per unit, respectively Ware expects to incur the following manufacturing overhead costs during the year 2 accounting period. Production supplies Supervisor salary Depreciation on equipment utilities Rental fee on manufacturing facilities $ 20,000 160,000 75,000 20,000 45,000 Required a. Combine the individual overhead costs into a cost pool and calculate a predetermined overhead rate assuming the cost driver is number of units. b. Determine the cost of the 2,000 units of product made in January.
Exercise 12-4A (Static) Pooling overhead cost LO 12-2 Ware Manufacturing Company produced 2,000 units of inventory in January, Year 2. It expects to produce an additional 14,000 uni during the remaining 11 months of the year in other words, total production for year 2 is estimated to be 16,000 units. Direct materi and direct labor costs are $64 and $52 per unit, respectively Ware expects to incur the following manufacturing overhead costs during the year 2 accounting period. Production supplies Supervisor salary Depreciation on equipment utilities Rental fee on manufacturing facilities $ 20,000 160,000 75,000 20,000 45,000 Required a. Combine the individual overhead costs into a cost pool and calculate a predetermined overhead rate assuming the cost driver is number of units. b. Determine the cost of the 2,000 units of product made in January.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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