The company estimates overhead for the upcoming year of $421,000 and estimates direct labor of $2,000,000.

The following estimated information is available for their Strawberry Cheesecake product:

Annual production

17,500 units

Direct materials per unit

$6

Direct labor per unit

$2

Required:

1)Compute the predetermined rate (overhead per dollar of labor) - Round this to TWO decimal places

2)Determine the amount of estimated overhead applied to one unit of strawberry cheesecake (one cake) AND the estimated amount of overhead to be applied to that product line for the year

3)What is the total estimated unit cost of the strawberry cheesecake?

Answer rating: 100% (QA)

1 To compute the predetermined overhead rate divide the estimated overhead by the estimated direct l... View the full answer