Q1) Fox Manufacturing is small textile manufacturer using machine-hours as single indirect-cost rate to assign manufacturing overhead costs to different jobs contracted during the year. Following evaluates are given for coming year for company and for Maize High School Science Olympiad Jacket job.
| |
Company |
Maize High School Job |
| Direct materials |
$50,000 |
$500 |
| Direct manufacturing labor |
$10,000 |
$100 |
| Manufacturing overhead costs |
$40,000 |
|
| Machine-hours |
100,000 mh |
800 mh |
Questions:
a) For Fox Manufacturing, find out annual manufacturing overhead cost-allocation rate.
b) Find out amount of manufacturing overhead costs assigned to Maize High School job.
c) Compute the estimated total manufacturing costs for Maize High School job.