Modesto Accessories manufactures two types of wallets-leather and canvas. The company allocates manufacturing overhead using a single plant wide rate with direct labor cost as the allocation base. Estimated Overhead Costs = $30,600 • . Direct Labor Cost per Leather Wallet = $48 . Direct Labor Cost per Canvas Wallet = $52 . Number of Leather Wallets = 600 Number of Canvas Wallets = 400 Compute the Predetermined Overhead Allocation Rate.

Modesto Accessories manufactures two types of wallets-leather and canvas. The company allocates manufacturing overhead using a single plant wide rate with direct labor cost as the allocation base. Estimated Overhead Costs = $30,600 • . Direct Labor Cost per Leather Wallet = $48 . Direct Labor Cost per Canvas Wallet = $52 . Number of Leather Wallets = 600 Number of Canvas Wallets = 400 Compute the Predetermined Overhead Allocation Rate.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 5PA: Medical Tape makes two products: Generic and Label. It estimates it will produce 423,694 units of...

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SteelMax produces metal containers that require 2.5 meters of material at $1.20 per meter and 0.3 direct labor hours at $18.00 per hour. Overhead is assigned at the rate of $12 per direct labor hour. What is the total standard cost for one unit of product that would appear on a standard cost card?need answer
Calculate the predetermined overhead allocation rate
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Stargate Corporation has established the following standards for the costs of one unit of its product. The standard production overhead costs per unit are based on direct-labor hours. Calculation for standard per unit cost is as follows: Std Cost Std Qty Std Price/Rate Direct Material $     14.40 6.00 kg $    2.40 per kg Direct Labor $       3.00 0.40 hour $    7.50 per hour Variable Overhead $      4.00 0.40 hour $    10.0 per hour Fixed Overhead $      4.80 0.40 hour $    12.0 per hour Total $     26.20 *based on practical capacity of 2,500 direct-labor hour per month During December 2020, Henry purchased 30,000 kg of direct material at a total cost of $75,000. The total wages for December were $20,000, 75% of which were for direct labor. Henry manufactured 4,500 units of product during December 2020, using 28,000kg of the direct material purchased in December and 2,100 direct-labor hours. Actual variable and fixed overhead cost were $23,100…
Stargate Corporation has established the following standards for the costs of one unit of its product. The standard production overhead costs per unit are based on direct-labor hours. Calculation for standard per unit cost is as follows: Std Cost Std Qty Std Price/Rate Direct Material $     14.40 6.00 kg $    2.40 per kg Direct Labor $       3.00 0.40 hour $    7.50 per hour Variable Overhead $      4.00 0.40 hour $    10.0 per hour Fixed Overhead $      4.80 0.40 hour $    12.0 per hour Total $     26.20 *based on practical capacity of 2,500 direct-labor hour per month During December 2020, Henry purchased 30,000 kg of direct material at a total cost of $75,000. The total wages for December were $20,000, 75% of which were for direct labor. Henry manufactured 4,500 units of product during December 2020, using 28,000kg of the direct material purchased in December and 2,100 direct-labor hours. Actual variable and fixed overhead cost were $23,100…