Exercise

CUPEY Manufacturing is a small textile manufacturer that uses machine$-$hours as a single overhead rate to allocate manufacturing overhead costs to various contracted jobs during the year. The following estimates are provided for the upcoming year for the company and for the work of making the UMET High School Science Olympiad Jacket.

CUPEY Secondary Manufacturing UMET

Direct materials $$25,000$ $$600$

Direct labor $$5,000$ $$200$

Manufacturing overhead costs $$20,000.$

Machine$-$hours $40,000$ mh $800$ mh

Required:

Determine the annual manufacturing overhead allocation rate.

Determine the amount of manufacturing overhead costs assigned to the UMET High School job. $($Determine the amount of manufacturing overhead costs allocated to the work of UMET High School.$)$

Determine the estimated total manufacturing costs for the UMET High School job. $($Determine the estimated total manufacturing costs for UMET High School.$)$