Answer:
Rings Total overhead cost per unit is 48.03
Step-by-step explanation:
Fabrication department :
Estimated machine hour = (970 * 5 + 2330 * 7)
=4850 + 16310
= 21,160 machine hour
Overhead cost per machine hour = 87,000/21,160
= 4.11 per hour
Assembly Department :
Estimated Labour hour = (970 * 6 + 2330 * 4)
=5,820 + 9,320
= 15,140
Estimated overhead cost per hour = 69,400/15,140
= 4.58 per hour
CALCULATE RING OVERHEAD COST PER UNIT :
Fabrication department = 4.11 * 5 = 20.55
Assembly department = 4.58 * 6 = 27.48
Total overhead cost per unit = 48.03