Figure 4-6 Cabrini Company produces two products: toy trucks and toy cars.They use departmental overhead rates for the two production departments: molding and finishing.Molding uses machine hours to assign overhead and Finishing uses direct labor hours.50,000 trucks and 250,000 cars are produced.Please find the following data:

-Refer to Figure 4-6.What is the overhead per unit for cars? (round to 3 decimal places)

Question

Figure 4-6 Cabrini Company produces two products: toy trucks and toy cars.They use departmental overhead rates for the two production departments: molding and finishing.Molding uses machine hours to assign overhead and Finishing uses direct labor hours.50,000 trucks and 250,000 cars are produced.Please find the following data:
 
-Refer to Figure 4-6.What is the overhead per unit for cars? (round to 3 decimal places)

Quizplus · Accepted Answer

The overhead per unit for cars is calculated as $0.505 when rounded to three decimal places.

Figure 4-6 Cabrini Company Produces Two Products: Toy Trucks and Toy