Compute the standard overhead rate per unit

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Reference no: EM131160439

12 Brown Protein Powder produces a dietary supplement. The standard cost of producing one unit is:

Material (1.30 pounds × $2.30) $2.99

Labor (1.20 hours × $10.00) 12.00

Overhead ?

Standard variable overhead is $8.00 per unit, and fixed annual overhead is $100,800.

At the start of 2014, expected production was 25,200 units.

During 2014, 30,000 units were produced.

The following information, related to actual costs incurred in 2014, is available:

1. Purchased 40,000 pounds of material for $84,400.

2. Used 39,010 pounds of material.

3. Worked 32,455 labor hours costing $371,700.

4. Actual overhead incurred was $325,600.

Compute the standard overhead rate per unit. (Round answer to 2 decimal places, e.g. 15.25.)

Reference no: EM131160439

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