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Loin Cabinetry produces two models of home shelving-problem 5




Question;Loin Cabinetry produces two models of home shelving, the Basic-Super and the Mega-Super. Data on operations and costs for November are:Basic-Super Mega-Super TotalMachine hours 8,000 4,000 12,000Direct labor hours 6,000 4,000 10,000Units produced 1,000 250 1,250Direct material costs $20,000 $ 7,500 $27,500Direct labor costs 129,000 71,000 200,000Manufacturing overhead costs 348,200Total costs $575,700Required: Compute the predetermined overhead rate, assuming Loin Cabinetry uses:(a) Direct labor hours to allocate overhead costs.(b) Direct labor costs to allocate overhead costs.(c) Machine hours to allocate overhead costs.(d) Compute the unit cost for each model under each overhead method.


Paper#43427 | Written in 18-Jul-2015

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