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Please show all work Question 12 Georgia Co. is a small manufacturer using machine-hours to calculate the single indirect-cost rate to allocate manufacturing overhead costs
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Question 12 Georgia Co. is a small manufacturer using machine-hours to calculate the single indirect-cost rate to allocate manufacturing overhead costs to various jobs contracted during the year. The following estimates are prepared for the coming year to manufacture 2,500 jackets and 200 jackets to be custom made for Augusta Youth Golf Company Augusta Youth Golf Direct materials $40,000 $3,000 Direct manufacturing labor $35,000 $5,000 Manufacturing overhead costs $25,000 Machine-hours (mh) 1,000 Mh 80 mh Number of jackets manufactured 2.500 Jackets 200 jackets Required: a) Determine the annual manufacturing overhead cost-allocation rate per machine hour. b) Determine the amount of manufacturing overhead costs allocated to the Augusta Youth Golf job. c) Determine the estimated total manufacturing costs for the Augusta Youth Golf job. d) Determine the estimated manufacturing costs for a jacket to be used in Augusta Youth Golf. e) Determine the estimated manufacturing costs for the Washington Inc. to make a jacket. Ignore special order from Augusta Youth Golf in computation. f) Explain why the average cost of a jacket to manufacture by the company is different from the custom made jacket for Augusta Youth GolfStep by Step Solution
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