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Lancelot 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
Lancelot 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 Case High School band jacket job. Company Case High School Job Direct materials $53,000 $2100 Direct labor $15,000 $500 Manufacturing overhead costs $40,000 Machine-hours 80,000 mh 800 mh For Lancelot Manufacturing, what is the annual manufacturing overhead cost-allocation rate? Select one: a. $0.85 b. $50.00 c. $0.50 d. $1.35
Lancelot 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 Case High School band jacket job.
Company Case High School Job
Direct materials $53,000 $2100
Direct labor $15,000 $500
Manufacturing overhead costs $40,000
Machine-hours 80,000 mh 800 mh
For Lancelot Manufacturing, what is the annual manufacturing overhead cost-allocation rate?
Select one:
a. $0.85
b. $50.00
c. $0.50
d. $1.35
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