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maxonik [38]
3 years ago
10

The Sawtooth Leather Company manufactures leather handbags and moccasins. For simplicity, the company has decided to use a singl

e plantwide factory overhead rate method to allocate factory overhead. Handbags = 60,000 units, 2 hours of direct labor Moccasins = 40,000 units, 3 hours of direct labor Total budgeted factory overhead cost = $360,000 Calculate the amount of factory overhead to be allocated to each unit using direct labor hours. Round your answers to two decimal places, if
Business
1 answer:
Svet_ta [14]3 years ago
4 0

Answer:

$3; $4.5

Explanation:

Total direct labor hour:

= Handbags + Moccasins

= (60,000 × 2) + (40,000 × 3)

= 120,000 + 120,000

= 240,000 direct labor hours

Total Overheads = $360,000

Overhead rate per direct labor hour:

= Total Overheads ÷ Direct labor hour

= $360,000 ÷ 240,000

= $1.5

Total OH cost per unit for handbags:

= OH rate per DLH × DLH per unit

= $1.5 × 2

= $3

Total OH cost per unit for Moccasins:

= OH rate per DLH × DLH per unit

= $1.5 × 3

= $4.5

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natta225 [31]

Answer:

The target selling price =$45  

Explanation:

The target selling price is the sum of the total unit cost plus 25% of the the unit cost

The target selling price = Total per unit cost + (25% × total unit cost)

The total unit cost is the sum of all the costs involved making the product available to the consumer.

The sum of direct material cost , labour cost variable manufacturing, fixed manufacturing overhead, variable selling and administrative expenses and fixed selling and administrative expenses.

The target selling price would be determined using te steps below:

Step 1: Calculate the unit cost

Total unit cost = 10 + 4 + 3 + 10 + 1 + 8 = 36  

Total unit cost = $36

Step 2: Calculate the target selling price

Target selling price = Unit cost + (25%× unit cost)

The target selling price = 36 + (25% × 36) = $45  

The target selling price =$45  

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Answer:

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