Compute the predetermined overhead rate assuming loin

Reference no: EM13392107

Loin Cabinetry produces two models of home shelving, the Basic-Super and the Mega-Super. Data on operations and costs for November are:

Basic-Super Mega-Super Total

Machine hours 8,000 4,000 12,000

Direct labor hours 6,000 4,000 10,000

Units produced 1,000 250 1,250

Direct material costs $20,000 $ 7,500 $27,500

Direct labor costs 129,000 71,000 200,000

Manufacturing overhead costs 348,200

Total costs $575,700

Required: Compute the predetermined overhead rate, assuming Loin Cabinetry uses:

(a) Direct labor hours to allocate overhead costs.

(b) Direct labor costs to allocate overhead costs.

(d) Compute the unit cost for each model under each overhead method.

Reference no: EM13392107

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