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    Overhead cost to be allocated to unframed, steel and wood frames

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    How much total overhead cost is expected to be allocated to unframed, steel, and wood frames?

    Unframed prints 80,000 units direct material print $12.
    Steel framed 15,000 units direct material print $16. Frame $4.
    Wood frame 7,000 units direct material print $20 frame $6 Matt

    Direct labor

    Unframed picking rate/ hour $12. picking time 10 min
    Steel frame picking rate/ hour $12 picking time 10 min
    Wood frame picking rate/hour $12 picking time 10 min
    Steel matting & framing rate/hour $21 20 min
    Wood matting & framing rate/hour $21 30 min

    375,000 manufactured overhead cost

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    Solution Preview

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    Answer
    pre determined overhead rate
    since labour hours are given, the manufacturing overhead costs can be allocated on the basis of labour hours.
    unframed prints  80,000 units    direct material print $12.
    steel framed       15,000 units    direct material print $16. Frame ...

    Solution Summary

    In the attached Excel file, total overhead cost required is calculated.

    $2.19

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