I need answer ASAP. Please help me. Lancelot Manufacturing is a small textile ma

Question

I need answer ASAP. Please help me. Lancelot Manufacturing is a small textile manufacturer using machine-hours as the single indirect-cost rate to allocate manufacturing overhead costs to the various jobs contracted during the year. The following estimates are provided for the coming year for the company and for the Case High School band jacket job. Company, Case High School Job $40,000 $10,000 $2,000 $400 Direct materials Direct labor Manufacturing overhead costs Machine-hours $45,000 100,000 mh 900 mh What are the total manufacturing costs of this job? Select one: O O 0 A. $2,400 B. $1,995 C. $2,805 D. $2,895

Explanation / Answer

Calculation of total manufacturing cost of the Case High School Job Direct Material $2,000.00 Direct Labour $400.00 Manufacturing Overhead [900 machine hours * $0.45] $405.00 Total Manufacturing cost of this Job $2,805.00 The answer is Option C. Calculation of single indirect cost rate to allocate manufacturing overhead cost Single Indirect Cost rate = Total manufacturing overhead cost for the company / Total Machine hours Single Indirect Cost rate = $45000 / 100000 machine hours = $0.45 per machine hour

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