50.1K

Verified Solution

Link Copied!

Sales Cost of Goods sold Gross Margin Less: Selling and Administrative Expense Operating Income No. of units produced $ $ $ $ $ Model Total Red-92 Terry 95 11,125,000 $ 9,000,000 $ 2,125,000 6,900,000 $ 5,490,000 $ 1,410,000 4,225,000 $ 3,510,000 $ 715,000 3,675,000 3,450,000 $ 225,000 550,000 $ 60,000 $ 490,000 $ 30,000 $ 5,000 Required: 1. Compute the predetermined overhead rate based on direct labour-hours that company used during the year. 2. Direct materials and labour costs per unit for the two products are below: Red 92 $ $ Direct Material Direct labour 75 Terry-95 $ $ 120 54 36 Using the data and rate computed in (1) above, determine the unit product cost of each product under the company's traditional costing system. Sales Cost of Goods sold Gross Margin Less: Selling and Administrative Expense Operating Income No. of units produced $ $ $ $ $ Model Total Red-92 Terry 95 11,125,000 $ 9,000,000 $ 2,125,000 6,900,000 $ 5,490,000 $ 1,410,000 4,225,000 $ 3,510,000 $ 715,000 3,675,000 3,450,000 $ 225,000 550,000 $ 60,000 $ 490,000 $ 30,000 $ 5,000 Required: 1. Compute the predetermined overhead rate based on direct labour-hours that company used during the year. 2. Direct materials and labour costs per unit for the two products are below: Red 92 $ $ Direct Material Direct labour 75 Terry-95 $ $ 120 54 36 Using the data and rate computed in (1) above, determine the unit product cost of each product under the company's traditional costing system

Answer & Explanation Solved by verified expert

See Answer