Question

# Cabigas Company manufactures two products, Product C and Product D. The company estimated it would incur...

Cabigas Company manufactures two products, Product C and Product D. The company estimated it would incur $175,900 in manufacturing overhead costs during the current period. Overhead currently is applied to the products on the basis of direct labor-hours. Data concerning the current period's operations appear below: Product C Product D Estimated volume 2,000 units 2,700 units Direct labor-hours per unit 3.50 hours 1.40 hour Direct materials cost per unit$ 23.00 $25.60 Direct labor cost per unit$ 30.00 $10.80 Requried: a-1. Compute the predetermined overhead rate under the current method. (Round your answer to 2 decimal places.) Predetermined overhead rate$ 74.85 per DLH a-2. Determine the unit product cost of each product for the current year. (Do not round your intermediate calculations. Round your final answer to 2 decimal places.) Product C Product D Unit product cost 

 Product -C Product - D Total Units 2000 2700 Labor hours 3.5 1.4 Total Hours = Units * Labor per hour 7000 3780 10780

= 175900 / 10780

Question - 2

 Product -C Product - D Direct material cost per unit 23 25.6 Direct labor cost per unit 30 10.8 Factory Overhead Product - C …. 3.5 Hours * 16.32 57.12 Product - D …. 1.4 Hours * 16.32 22.848 Unit Product cost                           \$ 110.12 59.25

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