Question: Exercise 4 - 3 A ( Algo ) Allocating overhead cost to accomplish smoothing LO 4 - 2 Rooney Corporation expects to incur indirect overhead

Exercise 4-3A (Algo) Allocating overhead cost to accomplish smoothing LO 4-2
Rooney Corporation expects to incur indirect overhead costs of $130,525 per month and direct manufacturing costs of $21 per unit. The expected production activity for the first four months of the year are as follows.
\table[[Estimated production in units,January,February,March,April]]
Required
a. Calculate a predetermined overhead rate based on the number of units of product expected to be made during the first four montl of the year.
b. Allocate overhead costs to each month using the overhead rate computed in Requirement a.
c. Calculate the total cost per unit for each month using the overhead allocated in Requirement b.
Answer is complete but not entirely correct.
Complete this question by entering your answers in the tabs below.
Required A
Required B
Requited C
Calculate the total cost per unit for each month using the overhead allocated in Requirement b.
\table[[Month,January,February,March,April],[Number of units,4,200,8,000,3,600,6,900],[Expected cost,,-,,],[Overhead,$ 24,150,$ 46,000*,$ 20,700,$ 39,675 X],[Direct costs,88,200,168,000,75,600,144,900],[Total cost,$ 112,350,$ 214,000,$ 96,300,$ 184,575],[Cost per unit,$ 27,$ 27,$ 27,$ 27
omework Assignment (i)
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Exercise 4-3A (Algo) Allocating overhead cost to accomplish smoothing LO 4-2
Rooney Corporation expects to incur indirect overhead costs of $130,525 per month and direct manufacturing costs of The expected production activity for the first four months of the year are as follows.
\table[[Estinated production in units January February March April]]
Required
a. Calculate a predetermined overhead rate based on the number of units of product expected to be made during the fir of the year.
b. Allocate overhead costs to each month using the overhead rate computed in Requirement a
c. Calculate the total cost per unit for each month using the overhead allocated in Requirement b.
Answer is complete but not entirely correct.
Complete this question by entering your answers in the tabs below.
Required A
Required B
Required C
Calculate a predetermined overhead rate based on the number of units of product expected to be made during the first four months of the year.
Predetermined overhead rate
$
6
per unit
Exercise 4 - 3 A ( Algo ) Allocating overhead

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