Question
1. Griffin, Inc., estimates manufacturing overhead costs for the 2015 accounting period as follows. Equipment depreciation $ 191,400 Supplies 19,400 Materials handling 32,300 Property taxes
1. Griffin, Inc., estimates manufacturing overhead costs for the 2015 accounting period as follows.
| Equipment depreciation | $ | 191,400 | |
| Supplies | 19,400 | ||
| Materials handling | 32,300 | ||
| Property taxes | 14,600 | ||
| Production setup | 19,900 | ||
| Rent | 44,900 | ||
| Maintenance | 38,500 | ||
| Supervisory salaries | 315,000 | ||
| The company uses a predetermined overhead rate based on machine hours. Estimated hours for labor in 2015 were 212,000 and for machines were 130,000. |
| Required: | |||||||
| a. | Calculate the predetermined overhead rate. (Round your answer to 2 decimal places.) | ||||||
| |||||||
| b. | Determine the amount of manufacturing overhead applied to Work in Process Inventory during the 2015 period if actual machine hours were 145,000. (Do not round intermediate calculations.) Applied manufacturing overhead ? |
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