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Manhattan Manufacturing is a small manufacturer that uses machine-hours as its activity base for assigned overhead costs to jobs. The company estimated the amounts for
Manhattan Manufacturing is a small manufacturer that uses machine-hours as its activity base for assigned overhead costs to jobs. The company estimated the amounts for 2020 for the company and for Job 92 as presented in the table below. Company Job 92 Direct Materials $92,000 $2,500 Direct Labour $15,000 $4,000 Manufacturing overhead costs $65,000 Machine hours 60,000 mh 1,925 mh During 2020, the actual machine-hours totaled 55,000, and actual overhead costs were $75,000. Required a. What is the predetermined overhead rate? b. What are the total manufacturing costs of job 92? c. How much overhead is over- or under-applied for the year for the company? State both the amount and whether it's over or under. d. If Manhattan Manufacturing sells job 92 for $26,000, how much is gross profit
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