Question

Question 2 View Policies Current Attempt in Progress Vaughn Company manufactures a line of lightweight running shoes. CEO Mark Vaughn estimated that the company would incur $3.124,200 in manufacturing overhead during the coming year. Additionally, he estimated the company would operate at a level requiring 246,000 direct labor hours and 537,728 machine hours. Assume that Vaughn Company uses direct labor hours as its manufacturing overhead application base. Calculate the company's predetermined overhead rate. (Round answer to 2 decimal places, e.g. 52.75.) Company's predetermined overhead rate /DLH e Textbook and Media Assume that job 4375 required 280 direct labor hours to complete. How much manufacturing overhead should be applied to the job? (Round answer to decimal places, e.g. 5,275.) Manufacturing overhead applied e Textbook and Media Assume that Vaughn Company uses machine hours as its manufacturing overhead application base. Calculate the company's predetermined overhead rate. (Round answer to 2 decimal places, eg. 52.75.) Company's predetermined overhead rate 5 /MH e Textbook and Media Assume that job 4375 required 740 machine hours to complete. How much manufacturing overhead should be applied to the job? (Round answer to decimal places, e.g. 5,275.) Manufacturing overhead applied Texthook and Media

Answer 1

predetermined overhead rate = estimated overhead cost / estimated activity base units

estimated overhead cost = $3124200

1. activity base units = 246000 DLH

predetermined overhead rate = 3124200 / 246000 = $12.7 per DLH

2. if it consumed 280 DLH

manufacturing overhead applied = predetermined overhead rate * activity base units

= 280 * 12.7 = $3556

3. activity base units = 537728 MH

predetermined overhead rate = 3124200 / 537728 = $5.81 per machine hour

4. if it required 740 machine hours

manufacturing overhead applied = 5.81*740 = $4300

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