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The following information is provided for Moon Antenna Corp, which manufactures two products: Lo-Gain antennas and Hi-Gain antennas for use in remote areas.
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Moon Antenna plans to produce 100 Lo-Gain antennas and 400HI- Gain antennas.
Read the requirements.
Requirement 1. Compute the indirect manufacturing 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
Compute the manufacturing cost allocated to Lo-Gain antennas, and then compute the indirect manufacturing cost per unit for Lo-Gain antennas. Next, compute the manufacturing cost allocated to Hi-Gai antennas and the indirect manufacturing cost per unit for Hi-Gain. (Round your cost per unit to the nearest cent)
Total indirect costs allocated
Data table
Number of units
Indirect cost per unit
Requirements
Compute the indirect manufacturing cost per unit using direct labor hours as the allocation base for the single plantwide predetermined overhead allocation rate.
Compute the indirect manufacturing cost per unit for each product using activity-based costing
\table[[Activity,,Cost,Allocation Base],[Setup,57,000 Number of setups],[Machine maintenance,33,000 Number of machine hours],[Total indirect manufacturing costs,$,90,000,,],[,o-Gain,Hi-Gain,Total],[Direct labor hours,,1,900,1,100,3,000],[Number of setups,,20,20,40],[Number of machine hours,,3,500,1,500,5,000]]
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