[finmang1]

I need some help with trying to figure out how to calculate the overhead cost per unit. I have computed the Activity rate as well as the overhead applied for both products. The following is the info provided:

Product / Direct Labor hours / annual prod. / total direct labor hours
XR7 0.4DLHs per unit 16,000.00 units 6,400 DLHs
ZDS 0.6 DLHs per unit 36,000.0 units 21,600 DLHs
Total 28,000 DLHS
Product XR7 direct materials per unit $44, ZD5 $28
Direct Labor rate $60 per hour

The company always uses direct labor-hours as the base for applying manu. Overhaed cost to products. Manu overhead totals $1,947,400 per year.

Actvity Cost Pool Activity Measure Est total Cost XR7 ZDS Total
Machine setup No# of setups $151,800 132 88 220
Special Mining machine hours 275,600 1,060 0 1,060
General Factory Direct labor-hours 1,520,000 3,800 15,200 19,000
I have calculated the total manu overhead cost to be $670,680 for Model XR7

I have calculated total manu. overhead cost for Model ZD5 to be 1,276,720.00

[morgaine300]

Please keep this problem in one thread over here where you started it:
https://www.askmehelpdesk.com/financ...ls-396959.html

It's very confusing to have the same problem spread around like that.