Allocating Manufacturing Overhead to Jobs [LO 6, 7] Webber Fabricating estimated

Question

Allocating Manufacturing Overhead to Jobs [LO 6, 7]

Webber Fabricating estimated the following annual costs.

Calculate overhead allocation rates using each of the four possible allocation bases provided. (Round answers to 2 decimal places, e.g. 5.25.)

Determine the cost of the following job (number 253) using each of the four overhead allocation rates. (Use rounded amounts from previous question to calculate answers for this question. Round answers to 0 decimal places, e.g. 125.) 
  Job 253   Direct materials $3,450 Direct labor (153 hrs @ $14/hr) $2,142 Machine hours used 153 

Direct labor hours $ Direct labor cost $ Machine hours $ Direct material cost $ 

Explanation / Answer

Direct labor hours: 1,131,000/42,600= 26.55 Direct labor cost: 1,131,000/628,000 = 1.80 Machine hours: 1,131,000/23,300= 48.54 Direct material cost: 1,131,000/807,100 = 1.40 job 253: Based on direct labor hours: Direct material = 3,450 Direct labor = 2,142 Manufacturing overhead = 153 * 26.55 = 4062 Based on direct labor cost: Direct material = 3,450 Direct labor = 2,142 Manufacturing overhead = 2,142 * 1.8 = 3856 Based on machine hours: Direct material = 3,450 Direct labor = 2,142 Manufacturing overhead = 153 * 48.54 = 7427 Based on direct material cost: Direct material = 3,450 Direct labor = 2,142 Manufacturing overhead = 3,450 * 1.40 = 4830

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.