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Question 1 Howard & Sons allocates manufacturing overhead to jobs based on machine hours. The company has the following estimated costs for the upcoming
Question 1 Howard & Sons allocates manufacturing overhead to jobs based on machine hours. The company has the following estimated costs for the upcoming year: Direct materials used Direct labor costs Wages of factory janitors Sales supervisor salary Utilities for factory Rent on factory building Advertising expense $ 50,000 $ 70,000 $ 35,000 $ 51,000 $ 17,000 $ 12,000 $ 5,000 The company estimates that 1,600 direct labor hours will be worked in the upcoming year, while 1,000 machine hours will be used during the year. You are required to calculate, i. The predetermined manufacturing overhead rate per machine hour. ii. The predetermined manufacturing overhead rate per labour hour. Question 2 Job 1574 requires $10,000 of direct materials, $4,000 of direct labor, 400 direct labor hours, and 200 machine hours. Manufacturing overhead is computed at $20 per direct labor hour used and $40 per machine hour used. You are required to calculate, i. Total manufacturing overhead cost ii. Total cost Question 3 Job 2908 requires $12,000 of direct materials, $5,500 of direct labor, 500 direct labor hours, and 250 machine hours. Manufacturing overhead is computed at $25 per direct labor hour used and $45 per machine hour used. You are required to calculate, i. Total manufacturing overhead cost ii. Total cost iii. Total conversion cost
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