1)

Your Company uses s a job-order costing system. The company uses predetermined overhead rates (POR) in applying manufacturing overhead cost to individual jobs. The POR is based on machine hours. The companys management made the following estimates for the year. What is the POR for next year?

Machine-hours 218,750

Direct labor-hours 80,000

Direct labor cost $400,000

Direct materials cost $600,000

Manufacturing overhead cost $875,000

2)

Your Company in the last problem uses s a job-order costing system. The company uses predetermined overhead rates (POR) in applying manufacturing overhead cost to individual jobs. The POR is based on machine hours. Use your answer to the last question and the data below to calculate the total overhead applied for the year.

For the year, Your Company had the following actual cost and operating data:

Machine-hours................. 225,000

Direct labor-hours............ 68,000

Direct labor cost......... $ 500,000

Manufacturing overhead cost $ 915,000

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