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problem: Cabigas Company manufactures two (2) products, Product E and Product F. The firm estimated it would incur $167,140 in manufacturing overhead costs during the current period. Overhead currently is applied to the products on the basis of direct labor hours. Information concerning the current period's operations appear below:

 

 Product E

Product F

Estimated volume

2,000 units

2,700 units

Direct labor hours per unit

2.00 hours

0.80 hour

Total hours

4000 hour

2160 hours

Direct materials cost per unit

$21.50

$24.10

Direct labor cost per unit

$24.00

$9.60

Required:
find out the predetermined overhead rate under the current method, & estimate the unit product cost of each product for the current year.

 

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