Maurice Tutor

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About Maurice Tutor

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Algebra,Applied Sciences,Biology,Calculus,Chemistry,Economics,English,Essay writing,Geography,Geology,Health & Medical,Physics,Science Hide all
Teaching Since: May 2017
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Education

  • MCS,PHD
    Argosy University/ Phoniex University/
    Nov-2005 - Oct-2011

Experience

  • Professor
    Phoniex University
    Oct-2001 - Nov-2016

Category > Accounting Posted 30 Jul 2017 My Price 11.00

O’Hara Corporation

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.

  2. Determine the selling price for the product, assuming that the company desires to earn a gross margin of $20 per unit.

Answers

Maurice Tutor
(5)
Status NEW Posted 30 Jul 2017 07:07 PM My Price 11.00

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