Lake Erie Company uses a plantwide overhead rate with machine hours as the allocation base. Next year, 770,000 units are expected to be produced taking 0.85 machine hours each. How much overhead will be assigned to each unit produced given the following estimated amounts?Estimated: Department 1 - Department 2
Manufacturing overhead costs - $3,141,500 - $1,571,000
Direct labor hours - 167,000 DLH - 267,000 DLH
Machine hours - 267,000 MH - 192,000 MH
a. $10.86 per unit
b. $8.73 per unit
c. $4.22 per unit
d. $11.77 per unit
e. $10 per unit

This exercise illustrates that poor quality can affect schedules and costs. a manufacturing process has 130 customer orders to fill. each order requires one component part that is purchased from a supplier. however, typically, 3% of the components are identified as defective, and the components can be assumed to be independent. (a) if the manufacturer stocks 130 components, what is the probability that the 130 orders can be filled without reordering components? (b) if the manufacturer stocks 132 components, what is the probability that the 130 orders can be filled without reordering components? (c) if the manufacturer stocks 135 components, what is the probability that the 130 orders can be filled without reordering components?