Question

lantwide rate unit cost, using direct labor hours? Relative to the plantwide rate, the cost increased for Form A and decreased for Form B. 3. What if the machine hours in Molding were 1,200 for Form A and 3,800 for Form B and the direct labor hours used in Polishing were 5,000 and 15,000, respectively? Calculate the overhead cost per unit for each product using departmental rates. Round your answers to the nearest cent.

Answer 1

Form A $4.6 overhead per unit

Form B $ 7.2 overhead per unit

Step-by-step explanation:

Missing Information attached

For molding the overhead will not change as the total horus are the same:

1,200 + 3,800 = 5,000 machine hours

$ 375,000 / 5,000 = $ 75

Then, we multiply:

1,200 x $ 75 = $ 90,000

3,800 x $ 75 = $ 285,000

Then, for Polishing:

5,000 + 15,000 = 20,000

$ 100,000 / 20,000 = $5

5,000 x $5 = $ 25,000

15,000 x $5 = $ 75,000

Form A 90,000 + 25,000 = 115,000

overhead per unit: 115,000 / 25,000 = 4.6

Form B 285,000 + 75,000 = 360,000

overhead per unit 360,000 / 50,000 = 7.2