Manufacturing overhead—multiple application bases Eddie Lander Tie Co.manufactures neckties and scarves. Two overhead application bases are used; some overhead is applied on the basis of raw material cost at a rate of 120% of material cost, and the balance of the overhead is applied at the rate of $8 per direct labor hour.Required: Calculate the cost per unit of a production run of 1,800 neckties that required raw materials costing $6,620 and 200 direct labor hours at a total cost of $2,240.
Manufacturing overhead—multiple application bases Eddie Lander Tie Co.manufactures neckties and scarves. Two overhead application bases are used; some overhead is applied on the basis of raw material cost at a rate of 120% of material cost, and the balance of the overhead is applied at the rate of $8 per direct labor hour.Required: Calculate the cost per unit of a production run of 1,800 neckties that required raw materials costing $6,620 and 200 direct labor hours at a total cost of $2,240.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Manufacturing
manufactures neckties and scarves. Two overhead application bases are used; some overhead is applied on the basis of raw material cost at a rate of 120% of material cost, and the balance of the overhead is applied at the rate of $8 per direct labor hour.
Required: Calculate the cost per unit of a production run of 1,800 neckties that required raw materials costing $6,620 and 200 direct labor hours at a total cost of $2,240.
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