VictoriaCo. 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 to manufacture 1,000 jackets and for the 100 jackets to be custom made for VictoriaHigh School Science Olympiad.

CompanyVictoria High School Job

Directmaterials$25,000$2,700

Direct manufacturinglabor$15,000$1,500

Manufacturing overheadcosts$40,000

Machine-hours(mh)500mh60 mh

Required:

a.Determine the annual manufacturing overhead cost-allocation rate per machine hour for the Victoria Co.

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

c.Determine the estimated total manufacturing costs for the VictoriaHigh School job.

d.Determine the estimated manufacturing costs for a jacket to be used in VictoriaHigh School Olympiad.

e.Determine the estimated manufacturing costs for VictoriaCo.to make a jacket. Explain why the average cost of a jacket to manufacture by VictoriaCo.is different from the custom made jacket for VictoriaHigh School Olympiad.