Principles of Financial Accounting (Elon University)
Principles of Financial Accounting (Elon University)
11th Edition
ISBN: 9781308839233
Author: Marshall
Publisher: McGraw-Hill Education
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Chapter 13, Problem 13.2ME

Mini-Exercise 13.2

LO 5, 6

Calculate predetermined overhead rate and unit cost Bentley estimates manufacturing overhead of $1,800,000 for 2016 and will apply overhead to units produced based on 720,000 machine hours. During 2016, Bentley used $1,450,000 of raw materials, paid $2,282,500 of direct labor, generated 715,000 machine hours, and produced 2,000,000 units.

Required:

Calculate Bentley’s predetermined overhead rate and cost per unit of production for 2016.

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