Answer:
Instructions are below.
Explanation:
Giving the following information:
Estimated overhead cost a month= 163,150
Direct manufacturing costs= $19 per unit.
Estimated production in units
January= 4,800
February= 8,600
March= 4,600
April= 7,100
Total= 25,100 units
Total overhead= 163,150*4= $652,600
A) To calculate the estimated manufacturing overhead rate we need to use the following formula:
Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Estimated manufacturing overhead rate= 652,600/25,100= $26 per unit
B) To allocate overhead, we need to use the following formula:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
January= 26*4,800= $124,800
February= 26*8,600= $223,600
March= 26*4,600= $119,600
April= 26*7,100= $184,600
C) The total cost per unit is calculated using the allocated overhead and the direct manufacturing cost per unit.
Total cost per unit= unitary overhead + direct manufacturing cost per unit
Because the unitary allocated overhead and direct manufacturing cost per unit remain constant during the four months, the total cost per unit is the same.
Total cost per unit= 26 + 19= $45
