Problem 4-35 Name:

Insert your answers into the gray-shaded cells. If an answer is incorrect,

the word "wrong" will appear.

a. Umbrella:
Overhead per unit of umbrellas
Overhead rate per hour ÷
Percent of overhead
Minutes in an hour x
Direct labor time to produce an umbrella

Gazebo:
Direct labor cost per gazebo
Overhead rate per hour ÷
Direct labor hours per gazebo

Chaise Lounge:
Direct labor cost per chaise lounge
Overhead rate per hour ÷
Direct labor hours per gazebo

b. Overhead
Units x per Unit
Umbrellas
Gazebos
Chaise lounge
Total

c. Allocation rates:
Cost ÷ Volume = Rate
Quality control
Setups
Mat. handling
Equip. operation

Overhead Cost allocation:

 Units x Rate Umbrellas Gazebos Lawn Chairs
Quality control:
x
x
x
Setups:
x
x
x
Materials handling:
x
x
x
Equipment operations:
x
x
x
Total overhead
÷ Number of units
OH cost per unit

Cost per unit:

Umbrellas Gazebos Lawn Chairs
Direct materials
Direct labor
Overhead (from above)
Total

d. (Key essay answer here.)

minutes

DLHs

DLHs

per unit
per setup
per lb.
per MH