Question
Wings Co. budgeted $575,000 manufacturing direct wages, 2,000 direct labor hours, and had the following manufacturing overhead: Overhead Cost PoolBudgeted Overhead CostBudgeted Level for Cost
Wings Co. budgeted $575,000 manufacturing direct wages, 2,000 direct labor hours, and had the following manufacturing overhead:
Overhead Cost PoolBudgeted
Overhead CostBudgeted Level
for Cost DriverOverhead Cost DriverMaterials handling$156,0005,200poundsWeight of materialsMachine setup17,700590setupsNumber of setupsMachine repair1,60032,000machine hoursMachine hoursInspections21,600360inspectionsNumber of inspections
Requirements for Job #971 which manufactured 4 units of product:
Direct labor20hoursDirect materials330poundsMachine setup40setupsMachine hours17,000machine hoursInspections15inspections
If Wings uses a volume-based overhead rate based on direct labor hours, the manufacturing overhead for Job #971 is:
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