Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Comfort 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
Comfort 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 Winton High School band jacket job. Company Winton High School Job Direct materials $40,000 $2,000 Direct labor $10,000 $400 Manufacturing overhead costs $45,000 Machine-hours 100,000 mh 900 mh 1) For Comfort Manufacturing, what is the annual manufacturing overhead cost-allocation rate? 2) What amount of manufacturing overhead costs will be allocated to this job? 3) What are the total manufacturing costs of this job? 4) What is the bid price for the Winton High School job if the company uses a 40% markup of total manufacturing costs
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started