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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
Nabors Company produces two types of stereo units: deluxe and regular. For the most recent year, Nabors reports the following data:
Â
|
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 |
Â
1.   Calculate a predetermined 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.
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