Question

Suppose that the ToyCo Shoppe allocates overhead by a traditional production volume-based method using direct labor dollars as the allocation base and one cost pool. Determine the overhead rate per direct labor dollar and the per unit overhead assigned to the strawberry cheesecake. (Round answers to 3 decimal places, e.g. 15.254.) Overhead rate $enter a dollar amount per direct labor dollar rounded to 3 decimal places per direct labor dollar Direct labor cost $enter a dollar amount per unit rounded to 3 decimal places per unit Overhead assigned $enter a dollar amount per unit rounded to 3 decimal places per unit

Answer 1

Question attached

Answer and Explanation:

Overhead rate per direct labor dollar

=$120,400+$77,140+$148,200+$94,500+$180,630 divided by $2,007,000

=$620,870/$2,007,000 = $0.29

Overhead assigned per unit dollar = total overhead assigned divided by annual production

Total overhead assigned = $72,400 x $0.29 = $20996

Overhead assigned per unit dollar =$20996 / 17,700 units = $1.18