This Question: 2 pts 22 of 27(26 complete) ? This Test: 100 pts pos Lancelot Man

Question

This Question: 2 pts 22 of 27(26 complete) ? This Test: 100 pts pos Lancelot Manufacturing is a small textile manufacturer using machine-hours as the single indirect-cost rate to allocate manufacturing overhead costs o 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 $87,000 $32,000 55,000 100,000 mh $2.400 800 800 mh Direct materials Direct labor Manufacturing overhead costs Machine-hours What amount ofl manufacturing overhead costs will be aliocated to this job? OB? $440 D. $1,232

Explanation / Answer

Company:

Manufacturing Overhead Costs = $55,000
Number of Machine-hours = 100,000

Predetermined Overhead Rate = Manufacturing Overhead Costs / Number of Machine-hours
Predetermined Overhead Rate = $55,000 / 100,000
Predetermined Overhead Rate = $0.55 per machine hour

Case High School Job:

Predetermined Overhead Rate = $0.55 per machine hour
Number of machine-hours = 800

Manufacturing Overhead applied = Predetermined Overhead Rate * Number of machine-hours
Manufacturing Overhead applied = $0.55 * 800
Manufacturing Overhead applied = $440

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