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Shotter Manufacturing is a small textile manufacturer using machine-hours to calculate the single indirect-cost rate to allocate manufacturing overhead costs to various jobs contracted during

Shotter Manufacturing is a small textile 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 provided for the coming year for the company and for the jackets to be made for Jackson High School Science Olympiad.

Company Jackson High School Job

Direct materials $25,000 $600

Direct manufacturing labor $5,000 $150

Manufacturing overhead costs $30,000

Machine-hours (mh) 50,000 mh 800 mh

Required:

a. For Shotter Manufacturing, determine the annual manufacturing overhead cost-allocation rate.

b. Determine the amount of manufacturing overhead costs allocated to the Jackson High School job.

c. Determine the estimated total manufacturing costs for the Jackson High School job.

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