Loin Cabinetry produces two models of home shelving-problem 5

Loin Cabinetry produces two models of home shelving-problem 5

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

Basic-Super	Mega-Super	Total
Machine hours	 8,000	 4,000	12,000
Direct labor hours	 6,000	 4,000	10,000

Units produced	 1,000	 250	 1,250

Direct material costs	$20,000	$ 7,500	$27,500
Direct labor costs	129,000	 71,000	200,000
Manufacturing overhead costs	 348,200
Total costs	 $575,700


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.
(d) Compute the unit cost for each model under each overhead method.