Blue Sky manufactures mattresses for regional furniture companies in USA. Blue Sky has the following monthly information.
Question:
Blue Sky manufactures mattresses for regional furniture companies in USA. Blue Sky has the following monthly information.
Direct Materials cost per unit = $900
Direct labor cost per unit ............................$1,350 (75Hrs at $18)
Estimated Overhead cost ...............................................$200,000
Estimated direct labor hours 90 hrs I think it should be 9000 labor hours
Blue Sky use direct labor hours to allocate manufacturing overhead.
Required
a) What is the predetermined overhead rate?
b) What is the total manufacturing cost assigned to each unit?
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a Computation of the predetermined overhead rate Formula Predetermined overhead r...View the full answer
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Related Book For 
Cost Management A Strategic Emphasis
ISBN: 978-0078025532
6th edition
Authors: Edward Blocher, David Stout, Paul Juras, Gary Cokins
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