Highway 1 Manufacturing (H1M) produces several, related products in multiple factories. At one facility, which produces only a single product, managers are debating whether to use a predetermined rate calculated on a monthly or annual basis. Overhead is applied on the basis of direct labor-hours at H1M.

Manufacturing data on the product follow: 

Managers at H1M have estimated monthly production for the coming year according to the following schedule:

Required

Help the managers at H1M in their analysis by recreating the information in Exhibit 7.8 of the text. Assume that estimated values are realized.

Transcribed Image Text:

Direct costs: Material cost per unit. Direct labor cost per unit (1.5 hours @ $26 per hour) Overhead costs: Fixed overhead per month Variable overhead per unit (1.5 hours @ $32 per hour).... $51 39 $320,000 48