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$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\text { Quarter }$
$\begin{array} { | l | c | c | c | c | } \hline & 1 & 2 & 3 & 4 \\\hline\text { Estirnated production in units } &40,000&15,000&27,000&38,000\\\hline\end{array}$ 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).