Alpha Geek

(8)

$10/per page/Negotiable

About Alpha Geek

Levels Tought:
University

Expertise:
Accounting,Algebra See all
Accounting,Algebra,Architecture and Design,Art & Design,Biology,Business & Finance,Calculus,Chemistry,Communications,Computer Science,Environmental science,Essay writing,Programming,Social Science,Statistics Hide all
Teaching Since: Apr 2017
Last Sign in: 442 Weeks Ago, 1 Day Ago
Questions Answered: 9562
Tutorials Posted: 9559

Education

  • bachelor in business administration
    Polytechnic State University Sanluis
    Jan-2006 - Nov-2010

  • CPA
    Polytechnic State University
    Jan-2012 - Nov-2016

Experience

  • Professor
    Harvard Square Academy (HS2)
    Mar-2012 - Present

Category > Accounting Posted 29 Jul 2017 My Price 5.00

Allocation to accomplish smoothing

Allocation to accomplish smoothing

O’Hara Corporation estimated its overhead costs would be $24,000 per month except for Janu- ary when it pays the $72,000 annual insurance premium on the manufacturing facility. Accord- ingly, the January overhead costs were expected to be $96,000 ($72,000 1 $24,000). The company expected to use 7,000 direct labor hours per month except during July, August, and September when the company expected 9,000 hours of direct labor each month to build inventories for high demand that normally occurs during the Christmas season. The company’s actual direct labor hours were the same as the estimated hours. The company made 3,500 units of product in each month except July, August, and September in which it produced 4,500 units each month. Direct labor costs were $24 per unit, and direct materials costs were $10 per unit.

Required

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

  2. Determine the total allocated overhead cost for January, March, and August.

 

  1. Determine the cost per unit of product for January, March, and August.

     

 

 

 

Answers

Alpha Geek
(8)
Status NEW Posted 29 Jul 2017 12:07 PM My Price 5.00

-----------

Attachments

file 1501333499-Answer.docx preview (186 words )
A-----------nsw-----------er -----------a: -----------Giv-----------en:----------- Ov-----------erh-----------ead-----------s: -----------Est-----------ima-----------ted----------- ov-----------erh-----------ead----------- co-----------sts----------- = -----------$24-----------,00-----------0 p-----------er -----------mon-----------th -----------and----------- An-----------nua-----------l i-----------nsu-----------ran-----------ce -----------pre-----------miu-----------m =-----------$72-----------,00-----------0 D-----------ire-----------ct -----------lab-----------or -----------hou-----------rs:----------- Ex-----------pec-----------ted----------- la-----------bor----------- ho-----------urs----------- =7-----------,00-----------0 h-----------our-----------s p-----------er -----------mon-----------th -----------exc-----------ept----------- du-----------rin-----------g J-----------uly-----------, A-----------ugu-----------st,----------- an-----------d S-----------ept-----------emb-----------er -----------whe-----------n t-----------he -----------com-----------pan-----------y e-----------xpe-----------cte-----------d 9-----------,00-----------0 h-----------our-----------s o-----------f d-----------ire-----------ct -----------lab-----------or -----------eac-----------h m-----------ont-----------h. -----------As -----------suc-----------h: -----------Exp-----------ect-----------ed -----------ann-----------ual----------- ov-----------erh-----------ead----------- = -----------$24-----------,00-----------0 *----------- 12----------- + -----------$72-----------,00-----------0 =----------- $3-----------60,-----------000----------- Ex-----------pec-----------ted----------- an-----------nua-----------l d-----------ire-----------ct -----------lab-----------or -----------hou-----------rs -----------= 7-----------,00-----------0 *----------- 9 -----------+ 9-----------,00-----------0 *----------- 3 -----------= 9-----------0,0-----------00 -----------hou-----------rs -----------Hen-----------ce:-----------
Not Rated(0)