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andre [41]
3 years ago
11

Bentley estimates manufacturing overhead of $3,251,600 for 2013 and will apply overhead to units produced based on 739,000 machi

ne hours. During 2013, Bentley used $1,640,000 of raw materials, paid $5,335,800 of direct labor, generated 734,000 machine hours, and produced 2,190,000 units. Required: Calculate Bentley’s predetermined overhead rate for 2013. (Round your answer to 2 decimal places.) Calculate Bentley’s cost per unit of production for 2013. (Round your answer to 2 decimal places.)
Business
1 answer:
saul85 [17]3 years ago
4 0

Answer:

Instructions are below.

Explanation:

Giving the following information:

Estimated overhead= $3,251,600

Estimated machine-hours= 739,000

During 2013, Bentley used $1,640,000 of raw materials, paid $5,335,800 of direct labor, generated 734,000 machine hours, and produced 2,190,000 units.

<u>First, we need to calculate the predetermined overhead rate:</u>

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Predetermined manufacturing overhead rate= 3,251,600/739,000

Predetermined manufacturing overhead rate= $4.4 per machine hour

<u>Now, we can allocate overhead:</u>

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Allocated MOH= 4.4*734,000= $3,229,600

<u>Finally, we can determine the total cost and unitary cost:</u>

Total cost= 1,640,000 + 5,335,800 + 3,229,600= $10,205,400

Unitary cost= 10,205,400/2,190,000= $4.66 per unit

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