Overhead cost to be allocated to unframed, steel and wood frames
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How much total overhead cost is expected to be allocated to unframed, steel, and wood frames?
Unframed prints 80,000 units direct material print $12.
Steel framed 15,000 units direct material print $16. Frame $4.
Wood frame 7,000 units direct material print $20 frame $6 Matt
Direct labor
Unframed picking rate/ hour $12. picking time 10 min
Steel frame picking rate/ hour $12 picking time 10 min
Wood frame picking rate/hour $12 picking time 10 min
Steel matting & framing rate/hour $21 20 min
Wood matting & framing rate/hour $21 30 min
375,000 manufactured overhead cost
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Solution Summary
In the attached Excel file, total overhead cost required is calculated.
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Answer
pre determined overhead rate
since labour hours are given, the manufacturing overhead costs can be allocated on the basis of labour hours.
unframed prints 80,000 units direct material print $12.
steel framed 15,000 units direct material print $16. Frame ...
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