Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Expected annual direct labor hours 40,000 Expected annual direct labor cost $625,000.00 Expected machine hours . 20,000 Expected material cost for the year $800,000.00 Expected

Expected annual direct labor hours 40,000

Expected annual direct labor cost $625,000.00

Expected machine hours . 20,000

Expected material cost for the year $800,000.00

Expected manufacturing overhead $1,000,000.00

a. We're asked to calculate the predetermined allocation rates using each of the four possible allocation bases provided.

b. Then determine the cost of the following job using each of the four overhead allocation rates:

Direct Materials $3000.00

Direct Labor(150 hrs @ $12/hr) $1800.00

Machine hours used 150 . 150

What I have done so far on question a.

$2,425,000.00(Total Overhead) /40,000(DL hrs)=$60.23

$2,425,000.00/20,000 (Machine hrs)=$121.25

$2,425,000.00/$800,000.00(Material cost)=$3.03

$2,425,000.00/$625,000.00(Labor cost)=$3.88

Not exactly sure if question a is correct and definitely not sure how this crosswalks to question b.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fundamentals Of Financial Accounting

Authors: Fred Phillips, Robert Libby, Patricia A Libby

3rd Edition

0073527106, 9780073527109

More Books

Students also viewed these Accounting questions

Question

Mortality rate

Answered: 1 week ago

Question

Armed conflicts.

Answered: 1 week ago