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MARKS) 3.1 Lancelot Manufacturing is a small textile manufacturer using machine-hours as the single indirect-cost rate to allocate manufacturing overhead costs to the various
MARKS) 3.1 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 RM67,000 RM2,400 Direct labor RM32,000 RM800 Manufacturing overhead costs RM55,000 Machine-hours(mh) 100,000 mh 800 mh (a) Compute the amount of Manufacturing Overhead costs to be allocated to this job. Show your workings. (2 marks) (b) Compute the total manufacturing costs of this Case High School job. (2 marks)
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