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The State University Of New Jersey Operations And Supply Chain Management Assignment Help - Overhead Rate


Question - Cabigas Company manufactures two products, Product C and Product D. The company estimated it
would incur $167,140 in manufacturing overhead costs during the current period. Overhead currently
is applied to the products on the basis of direct labor hours.
Data concerning the current period's operations appear below:
Product C Product D

Estimated volume 2,000 units 2,700 units

Direct labor hours per unit 2.00 hours 0.80 hour
Total Hours 4000 hour 2160 hours

Direct materials cost per unit $21.50 $24.10

Direct labor cost per unit $24.00 $ 9.60

Required:
Compute the predetermined overhead rate under the current method, and determine the unit product
cost of each product for the current year.

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