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  3. a. calculate dixon's current plantwide overhead ra

a. Calculate Dixon's current plantwide overhead rate based on direct labor hours. b. Verify Dixon's...

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Accounting

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a. Calculate Dixon's current plantwide overhead rate based on direct labor hours. b. Verify Dixon's calculation of overhead cost per unit of S12.82 for shafts and $6.10 for gears. | Shafts Gears Setup costs Machine costs Purchasing and receiving costs Engineering costs Materials handling costs $30,000 175,000 210,000 200,000 90,000 Production Units Selling price Overhead per unit based on DLH) DM & DL cost per unit Number of production runs Number of purchasing & receiving orders processed Number of machine hours Number of direct labor hours Number of engineering hours Number of material moves 10,500 $31.86 $ 24.00 $ 6.10 8.53$6.26 20 50,000 12.8:2 10 Total MO $705,000 40 12,750 25,000 5,000 50 100 6,000 2,500 5,000 40 Shafts Gears Part (a) Current plantwide overhead rate = Part (b) Overhead per unit Current plantwide overhead rate = cost per unit

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