White Mountain Company produces various types of snow skis. Estimated overhead for the year was $780,000 and estimated direct labour hours were 260,000. During the month of June, 18,100 direct labour hours were worked, $55,400 of direct materials were used, and the average wage was $15 per hour. In June, 10,000 pairs of skis were produced.
A. Calculate the predetermined overhead rate.
B. Calculate the overhead applied to production for June.
C. Calculate unit cost for each pair of skis.

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The Answer of White Mountain Company produces various types of snow skis. Estimated overhead for the year was $780,000 and estimated direct labour hours were 260,000. During the month of June, 18,100 direct labour hours were worked, $55,400 of direct materials were used, and the average wage was $15 per hour. In June, 10,000 pairs of skis were produced.
A. Calculate the predetermined overhead rate.
B. Calculate the overhead applied to production for June.
C. Calculate unit cost for each pair of skis.

White Mountain Company Produces Various Types of Snow Skis