Unformatted text preview: Boot is a high-volume item totaling 25,000 units annually. The Club is a low-volume item totaling only 5,000 units per year. Each product requires one hour of direct labor for completion. Therefore, total annual direct labor hours are 30,000 (25,000 + 5,000). Expected annual manufacturing overhead costs are $900,000. Thus, the predetermined overhead rate is $30 ($900,000 ÷ 30,000) per direct labor hour. The direct materials cost per unit is $40 for The Boot and $30 for The Club. The direct labor cost is $12 per unit for each product....
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