Lesson 2 Homework Part 1 Given the following information, what is the predetermined overhead rate per unit using direct labor hours as an application base? And what is the contribution margin per unit if overhead is applied using expected direct labor hours as a base? Data: Sales price per unit.. Direct materials per unit... Direct labor per hour.. Direct labor hour needed per unit....2 hours Number of units to be produced.....50,000 Total estimated OH.. Cutting.. Assembly. Inspection. .$500 $150 $25 Part 2 Continuing with this same scenario, assume that the following activities incur various OH costs: $250,000 Sales price per unit.. Direct materials per unit.. $100,000 based in 80,000 cuts $75,000 based on 160,000 parts $25,000 based on 1,000 inspections What would the Contribution margin per unit be, given the information above (and below) using ABC? Cutting necessary. Assembly. Inspection.. $500 $150 .$25 Direct labor per hour. Direct labor hour needed per unit....2 hours Number of units to be produced.....50,000 Total estimated OH. $250,000 2 cuts needed per unit 4 assembly parts per unit 1 inspection per unit

*excel table please!!

Part 1 Given the following information, what is the predetermined overhead rate per unit using direct labor hours as an application base? And what is the contribution margin per unit if overhead is applied using expected direct labor hours as a base? Direct labor hour needed per unit...2 hours Number of units to be produced.....50,000 Total estimated OH...$250,000 Part 2 Continuing with this same scenario, assume that the following activities incur various OH costs: What would the Contribution margin per unit be, given the information above (and below) using ABC