Morris Company Makes One Product,and It Expects to Incur a Total

Essay

Morris Company makes one product,and it expects to incur a total of $600,000 in indirect (overhead)costs during the current year.Production of the product for the year is expected to be: $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ Quarter
$$\begin{array} { | l | l| l | l | l r | r | } \hline & 1 & 2 & 3 & 4 \\\hline \begin{array} { l } \text { Estimated } \\\text { production in } \\\text { units }\end{array} & 40,000 & 15,000 & 27,000 & 38,000 \\\hline\end{array}$$ Required:
1)Calculate a predetermined overhead rate based on the number of units of product expected to be made during the current year.
2)Assuming that direct materials and direct labor costs are $10 and $15,respectively,determine the total cost per unit using the overhead rate you calculated in part (1).