Answer:
Instructions are listed below
Explanation:
Giving the following information:
The following information has been provided for March:
Product 1= 3,000
Product 2= 2,000
Total Units= 5,000
Machine hours
Product 1= 2,000
Product 2= 4,000
Total= 6,000
Direct labor hours
P1= 2,000
P2= 2,000
Total= 4,000
Direct labor:
P1= 45,000
P2= 45,000
Total= 90,000
Manufacturing overhead:
Utilities (machine related) $ 3,000
Supplies (labor related) 8,000
Training (labor related) 20,000
Supervision (labor related) 17,000
Machine depreciation (machine related) 24,000
Lease on factory (machine related) 33,000
Miscellaneous (labor related) 5,000
Total manufacturing overhead $ 110,000
A) Machine related:
Utilities= 3,000
Machine depreciation= 24,000
Lease on factory= 33,000
Total= 60,000
Labor-related:
Supplies (labor related) 8,000
Training (labor related) 20,000
Supervision (labor related) 17,000
Miscellaneous (labor related) 5,000
Total= 50,000
B) Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Machine:
Estimated manufacturing overhead rate= 60,000/6000= $10 per machine hour
Labor:
Estimated manufacturing overhead rate= 50,000/4000= $12.5 per direct labor hour
C)
Product 1:
Direct material= 60,000
Direct labor= 45,000
MOH= (10*2000) + (12.5*2000)= $45,000
Total= 150,000
Product 2:
Direct material= 60,000
Direct labor= 45,000
MOH= (10*4000) + (12.5*2000)= 65,000
Total= 170,000
