Disney's Frozen 2

Budgeted indirect costs = $2,385,000

Direct Materials=700,000

Direct Labor= 550,000

Direct labor hour= 27,500

Budgeted indirect-cost rate = Budgeted total costs in indirect-cost divide by Budgeted total quantity of
cost-allocation base

$2,385,000 / 27,500 = 86.727

27,500/2= 13.750 for each product

86.727*13.750= 1,192.496 for both products

Lucas film’s Star Wars

Budgeted indirect costs = $2,385,000

Direct Materials=550,000

Direct Labor= 35000

Direct labor hour= 27,500

Budgeted indirect-cost rate = Budgeted total costs in indirect-cost divide by Budgeted total quantity of
cost-allocation base

$2,385,000 / 27,500 = 86.727

27,500/2= 13.750 for each product

86.727*13.750= 1,192.496 for both products