Munoz Corporation estimated its overhead costs would be $22,800 per month except for January when it pays the $179,010 annualinsurance premium on the manufacturing facility. Accordingly, the January overhead costs were expected to be $201.810 ($179,010 +$22,800). The company expected to use 7.400 direct labor hours per month except during July, August, and September when thecompany expected 9,900 hours of direct labor each month to build inventories for high demand that normally occurs during theChristmas season. The company's actual direct labor hours were the same as the estimated hours. The company made 3,700 units ofproduct in each month except July, August, and September, in which it produced 4,950 units each month. Direct labor costs were$24.80 per unit, and direct materials costs were $11.50 per unit.Requireda. Calculate a predetermined overhead rate based on direct labor hours.b. Determine the total allocated overhead cost for January, March, and August.c. Determine the cost per unit of product for January, March, and August.d. Determine the selling price for the product, assuming that the company desires to earn a gross margin of $21.60 per unit.Complete this question by entering your answers in the tabs below.Reg AReq B to Db. Determine the total allocated overhead cost for January, March, and August.c. Determine the cost per unit of product for January, March, and August.d. Determine the selling price for the product, assuming that the company desires to earn a gross margin of $21.60 per unit.Note: Do not round intermediate calculations. Round "Cost per unit" and "Selling price per unit" to 2 decimal places. Roundyour total allocated overhead cost to nearest whole dollar.b. Total allocated overhead costc. Cost per unitd. Selling price per unitJanuaryMarch< Req AAugustHe to >Show less A

The application of overhead entails the allocation of indirect production expenses to a company's…

Muñoz Corporation estimated its overhead costs would be $22,800 per mon insurance premium on the manufacturing facility. Accordingly, the January ov $22,800). The company expected to use 7,400 direct labor hours per month company expected 9,900 hours of direct labor each month to build inventori Christmas season. The company's actual direct labor hours were the same a product in each month except July, August, and September, in which it produ $24.80 per unit, and direct materials costs were $11.50 per unit.

Muñoz Corporation estimated its overhead costs would be $22,800 per mon insurance premium on the manufacturing facility. Accordingly, the January ov $22,800). The company expected to use 7,400 direct labor hours per month company expected 9,900 hours of direct labor each month to build inventori Christmas season. The company's actual direct labor hours were the same a product in each month except July, August, and September, in which it produ $24.80 per unit, and direct materials costs were $11.50 per unit.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The cost formula for the maintenance department of the Eifel Co. is $6,500 per month plus $3.50 per machine hour used by the production department. a. Calculate the maintenance cost that would be budgeted for the month of May in which 5,700 machine hours are planned to be used. b. Prepare an approproate performance report for the maintenance department assuming that 5,860 machine hours were actually used in the month of May, and the total maintenance cost inccured was $28,010.
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Calculate and Use Overhead Rate Bagley Corporation expects to incur $225,000 of factory overhead and $600,000 of general and administrative costs next year. Direct labor costs at $20 per hour are expected to total $160,000. If factory overhead is to be applied per direct labor hour, how much overhead will be applied to a job incurring 40 hours of direct labor?
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Kingsley Products estimated that direct labor for the year would be 64,000 hours. The company also estimated that the fixed overhead cost for the year would be $160,000. They further estimated the variable overhead cost to be $4.00 per direct labor-hour. All overhead at Kingsley Products is applied on the basis of direct labor-hours. During the year, fixed overhead costs were exactly as planned ($160,000). Variable overhead was incurred at $4.50 per direct labor-hour. Underapplied overhead for the year was calculated as $18,000. Required: How many direct labor-hours were worked during the period? Note: Do not round intermediate calculations. Direct labor-hours
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