Question: 27 and 28 please.. ESSAY. Write your answer in the space provided or on a separate sheet of paper 27) Parr Corporation makes three products,
27 and 28 please.. ESSAY. Write your answer in the space provided or on a separate sheet of paper 27) Parr Corporation makes three products, X, Y, and Z. Expected overhead costs for the con pegrecdation o y building Factory utility costs Supervisory salaries Factory supplies Total S 140,000 160,000 250,000 50,000 600 Parr uses direct labor hours as the cost driver to allocate overhead costs. Budgeted direct labor hours for each product are: Product X, 15,000 direct labor hours Product Y, 10,000 direct labor hours Product Z, 5,000 direct labor hours Required: 1) Determi 2) Assume per hour. Calculate the budgeted or expected cost of each unit of X. 28) Morris Company makes one product, and it expects to incur a total of S600,000 in indirect (overhead) costs ine the amount of manufacturing overhead that should be allocated to each of the three products that each unit of Product X requires $40 in direct materials and 3 direct labor hours at a rate of $15 during the current year. Production of the product for the year is expected to be: uarter Estimated production in units Required: 1) Calculate a predetermined overhead rate based on the number of units of product expected to be made during the current year. 2) Assuming that direct materials and direct labor costs are $10 and $15, respectively, determine the total cost per unit using the overhead rate you calculated in part (1)
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