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Vaughn Company manufactures a line of lightweight running shoes. CEO Mark Vaughn estimated that the company...

Vaughn Company manufactures a line of lightweight running shoes. CEO Mark Vaughn estimated that the company would incur $3,101,560 in manufacturing overhead during the coming year. Additionally, he estimated the company would operate at a level requiring 212,000 direct labor hours and 616,612 machine hours.


Assume that Vaughn Company uses direct labor hours as its manufacturing overhead application base. Calculate the company’s predetermined overhead rate

Assume that job 4375 required 400 direct labor hours to complete. How much manufacturing overhead should be applied to the job?


Assume that Vaughn Company uses machine hours as its manufacturing overhead application base. Calculate the company’s predetermined overhead rate.


Assume that job 4375 required 690 machine hours to complete. How much manufacturing overhead should be applied to the job?

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1 Predetermined Overhead rate Estimated Overhead costs Direct labor hours $3,101,560 $14.63 per direct labor hour 212,000 $14

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