HiTek Manufacturing Inc makes two types of industrial compon

Hi-Tek Manufacturing, Inc, makes two types of industrial component parts -the B300 and the T500. An absorption costing income statement for the most recent period is shown: Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating loss 1,695, 400 1,258, 628 436, 772 550,000 s (113,228) Hi-Tek produced and sold 60,200 units of B300 at a price of $20 per unit and 12,600 units of T500 at a price of $39 per unit. The company\'s traditional cost system allocates manufacturing overhead to products using a plantwide overhead rate and direct labor dollars as the allocation base. Additional information relating to the company\'s two product lines is shown below Direct materials Direct labor Manufacturing overhead Cost of goods sold 400,200 162, 600 562,800 120,600 42,300162, 900 532,928 $1,258, 628

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PMOH Rate =

Estimated total mfg. cost / Estimated total DL $