Ch. 4 Self Study Pg 316
Assign Indirect Cost to Individual Products or Services.
Please solve the following based on the material given below.
Per Unit Cost Information
Floor Safe Business
Direct Materials $20 Direct Labor 10 Manufacturing Overhead is Unkown
Wall Safe Business
Direct Materials $15 Direct Labor 15 Manufacturing Overhead is Unkown
**Solve the Unkown
Production Information
Floor Safe Business
Units Produced 35,000 Direct Labor Hours per unit 1
Wall Safe Business
Units Produces 10,000 Direct Labor Houers per unit 1.5
***600.000 is the estimated total manufacturing overhead
Please solve these questions and explain
1) Compute the predetermined overhead rate per direct labor hour
2) How much of the total manufacturing overhead would be allocated to each product?
3) Compute the total manufacturing Cost per unit for each product.