Cabat Company Manufactures Two Products, Product C and ProductD

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The Answer is a. The expected total direct labor hours during the period are computed as follows:

a. The expected total direct labor hours during the period are computed as follows: Using these hours as a base, the predetermined overhead using direct labor hours would be: Predetermined overhead rate = Estimated overhead cost ÷ Expected direct labor hours = $177,910 ÷ 6,960 DLHs = $25.56 per DLH Using this overhead rate, the unit product costs are: b. The overhead rates for each activity center are as follows: The overhead cost charged to each product is: Overhead cost per unit: Product C: $96,270 ÷ 3,800 units = $25.33 per unit Product D: $81,640 ÷ 3,000 units = $27.21 per unit Using activity based costing, the unit product cost of each product would be:

Using these hours as a base, the predetermined overhead using direct labor hours would be:
Predetermined overhead rate = Estimated overhead cost ÷ Expected direct labor hours
= $177,910 ÷ 6,960 DLHs = $25.56 per DLH
Using this overhead rate, the unit product costs are:

b. The overhead rates for each activity center are as follows:

The overhead cost charged to each product is:

Overhead cost per unit:
Product C: $96,270 ÷ 3,800 units = $25.33 per unit
Product D: $81,640 ÷ 3,000 units = $27.21 per unit
Using activity based costing, the unit product cost of each product would be:

Cabat Company Manufactures Two Products, Product C and ProductD

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Cabat Company Manufactures Two Products, Product C and ProductD

Essay

Correct Answer:VerifiedShow Answer

Correct Answer:
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