Answer:
Option (A) is correct.
Explanation:
Total estimated manufacturing overhead $300,000
Total estimated machine hours 150,000 MH
Plant-wide overhead rate:
= $300,000 ÷ 150,000 MH
= $2 per MH
Overhead cost per unit :
= Total cost per unit - Direct labor cost per unit - Direct material cost per unit
= $80 - $23 - $15
= $42 per unit
Number of machine hours used to produce one unit of RST :
= Overhead cost per unit ÷ Overhead recovery rate per machine hours
= $42 ÷ ($2 per MH)
= 21 MH
Answer:
Gold Company uses a plantwide overhead rate with machine hours as the allocation base.
Use the following information to solve for the amount of machine hours estimated per unit of product RST.
Direct material cost per unit of RST $15
Total estimated manufacturing overhead $300,000
Total cost per unit of RST $80
Total estimated machine hours 150,000
MH Direct labor cost per unit of RST $232
1 MH per unit of RST.
2 MH per unit of RST.
20 MH per unit of RST.
37.5 MH per unit of RST.
38 MH per unit of RST.
the amount of machine hours estimated per unit = divide total overhead / the number of direct labor hours
300,000/150,000 =2
Explanation:
