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1 Plantwide Rates Nabors Company produces two types of stereo units deluxe and regular. For the most recent year Nabors reports the following data Budgeted overhead $180000 Expected activity

1. Plantwide Rates

 

Nabors Company produces two types of stereo units: deluxe and regular. For the most recent year, Nabors reports the following data:

 

Budgeted overhead $180,000

Expected activity (in direct labor hours) 50,000

Actual activity (in direct labor hours) 51,000

Actual overhead $200,000

 

 

Deluxe

Regular

Units produced

5,000

50,000

Prime costs

$40,000

$300,000

Direct labor hours

5,000

46,000

 

Required:

 

(1) Calculate a predetermined plantwide overhead rate based on direct labor hours.

(2) What is the applied overhead?

(3) What is the under – or – overapplied overhead?

(4) Calculate the unit cost of each stereo unit.

Jun 26 2020 View more View Less

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