Question: The following information is provided for Ring Antenna Corp., which manufactures two products: Basic antennas and Superior antennas for use in remote areas. View
The following information is provided for Ring Antenna Corp., which manufactures two products: Basic antennas and Superior antennas for use in remote areas. View the information. Ring Antenna Corp. plans to produce 175 Basic antennas and 400 Superior antennas. Read the requirements. Requirement 1. Compute the manufacturing overhead cost per unit using direct labor hours as the allocation base for the single plantwide predetermined overhead allocation rate. First, compute the predetermined overhead (OH) allocation rate. (Round your answer to the nearest cent.) The predetermined overhead (OH) allocation rate is $ 10.00 Compute the manufacturing cost allocated to Basic antennas, and then compute the indirect manufacturing cost per unit for Basic antennas. Next, compute the manufacturing cost allocated to Superior antennas and the manufacturing overhead cost per unit for Superior. (Round your cost per unit to the nearest cent.) Basic Allocated manufacturing overhead cost Number of units 16,000 175 91.43 Manufacturing overhead cost per unit Superior Information Activity Cost Allocation Base Setup $ 52,000 Number of setups Machine maintenance 33,000 Number of machine hours $ 85,000 Total indirect manufacturing costs Direct labor hours Number of setups Basic 1,600 20 Superior Total 6,900 8,500 20 40 Number of machine hours 3,500 1,500 5,000
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