Calculate the unit cost of each stereo unit

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Reference no: EM131198444

Nabors Company produces two types of stereo units: deluxe and regular. For the most recent year, Nabors reports the following data:
• Budgeted overhead                            $180,000
• Expected activity (in direct labor hours)    50,000
• Actual activity (in direct labor hours)        51,000
• Actual overhead                                $200,000


Deluxe

Regular

Units produced

5,000

50,000

Prime costs

$40,000

$300,000

Direct labor hours

5,000

46,000

Required:

(1) Calculate a predetermined plantwide overhead rate based on direct labor hours.

(2) What is the applied overhead?

(3) What is the under - or - overapplied overhead?

(4) Calculate the unit cost of each stereo unit.

Reference no: EM131198444

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