Question: Michael s company uses a single predetermined overhead rate using direct labor hours as the allocation base ( driver ) . a ) Calculate the

Michaels company uses a single predetermined overhead rate using direct labor hours as
the allocation base (driver).
a) Calculate the Predetermined Overhead Rate given the following information:
Total Estimated Manufacturing Overhead Cost $ 350,000
Total Estimated Direct Labor Hours 6,250 DLH
Wage rate for direct labor employees $20/ hour
b) The following information was recorded for Job 432XE:
Total Direct Materials Cost $650
Total Direct Labor Hours 15 @ $20 per hour
Purchase Orders issued 5
Tests conducted 10
How much overhead was allocated (applied) to Job 432XE using a single overhead rate.
c) What is the product cost per unit for Job 432X if 200 units were produced?

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