Answered step by step
Verified Expert Solution
Question
1 Approved Answer
In problem b. 100 machine hours Calculate and Use Overhead Rate During the coming accounting year, Baker Manufacturing, Inc., anticipates the following costs, expenses, and
In problem b. 100 machine hours
Calculate and Use Overhead Rate During the coming accounting year, Baker Manufacturing, Inc., anticipates the following costs, expenses, and operating data: Direct material (16,000 lb.) $ 200,000 Direct labor (@ $20.00/hr.) 280,000 Indirect material 30,000 Indirect labor 55,000 Sales commissions 85,000 Factory administration 40,000 Non factory administrative expenses 50,000 Other manufacturing overhead* 120,000 *Provides for operating 70,000 machine hours. a. Calculate the predetermined manufacturing overhead rate for the coming year for each of the following application bases: (1) direct labor hours, (2) direct lab and (3) machine hours. Round direct labor hours and machine hours answers to two decimal places, when applicable. Round direct labor costs to the nearest one decimal place percer applicable (example: 76.4%). Round direct labor hours and machine hours answers to two decimal places, when applicable. Round direct labor costs to the nearest one decimal place pe applicable (example: 76.496). Manufacturing Application base overhead rate Direct labor hours $ 17.5 Direct labor costs 175 % Machine hours $ 3.5 b. For each item in requirement a, determine the proper application of manufacturing overhead to Job 63, to which 32 direct labor hours, $375 of direct labo machine hours have been charged. Round answers to two decimal places, when applicable. Application base Overhead applied to Job 63 Direct labor hours $ 560 Direct labor costs 656.25 Machine hours 350Step 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