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    Fundamentals of cost accounting

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    5. Loin Cabinetry produces two models of home shelving, the Basic-Super and the Mega-Super. Data on operations and costs for November are:

    Required: Compute the predetermined overhead rate, assuming Loin Cabinetry uses:
    (a) Direct labor hours to allocate overhead costs
    (b) Direct labor costs to allocate overhead costs
    (c) Machine hours to allocate overhead costs
    Refer to (b). Compute the unit cost for each model.

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    Solution Summary

    Your response show you three potential overhead rates (not rounded in Excel) and then uses labor costs to allocate overhead and compute cost per unit. Click on cells to see computations.