In 2012, Pingtung Corporation incurred direct manufacturing costs of $35 per unit and manufacturing overhead costs of

Question:

In 2012, Pingtung Corporation incurred direct manufacturing costs of $35 per unit and manufacturing overhead costs of $175,000. The production activity for the four quarters of 2012 follows:

1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Number of units produced 3,300 2,700 4,500 2,000

Required

a. Calculate a predetermined overhead rate based on the number of units produced during the year.

b. Allocate overhead costs to each quarter using the overhead rate computed in Requirement a.

c. Using the overhead allocation determined in Requirement b, calculate the total cost per unit for each quarter.

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...