Winners, Inc., manufactures women's boating shoes. Manufacturing overhead is assigned to production on a machine-hour basis. For 2010, it was estimated that manufacturing overhead would total $366,300 and that 25,400 machine hours would be used.
Required:
(a)Calculate the predetermined overhead application rate that will be used for absorption costing purposes during 2010. (Round your answer to 2 decimal places. Omit the "tiny_mce_markerquot; sign in your response.)
Predetermined overhead application rate $
(b)During May, 3,200 pairs of shoes were made. Raw materials costing $6,700 were used, and direct labor costs totaled $9,500. A total of 800 machine hours were worked during the month of May. Calculate the cost per pair of shoes made during May. (Round your intermediate calculations and final answer to 2 decimal places. Omit the "tiny_mce_markerquot; sign in your response.)
Cost per pair of shoes $
(c)At the end of May, 1,300 pairs of shoes were in ending inventory. Calculate the cost of the ending inventory and the cost of the shoes sold during May. (Round your intermediate calculations and final answer to 2 decimal places. Omit the "tiny_mce_markerquot; sign in your response.)
Cost of shoes in inventory $
Cost of shoes sold $