Question

ter 3 Assignment Required informatio 12 Mansfield, Inc., has two production departments, Assembly and Packaging. The company uses a je computes a predetermined overhead rate in each production department. The predetermined ove Department is based on machine hours (MHs) and it is based on direct labor-hours (DLHs) in the P beginning of the year, the company made the following estimates: Part 1 of 2 Assembly 5,200 6B, 400 $390,000 Packaging 62,000 11, 900 $419,000 $ 3.75 Direct labor-hours Machine-hours Total fixed manufacturing overhead cost Variable manufacturing overhead per DLH Variable manufacturing overhead per MH S 3.00 apped eBook Knowledge Check 01 What is the estimated total manufacturing overhead in the Assembly Department? Prim Preces O $595,200 O $651,600 O $809,000 O $1,246,700

Answer 1

Answer is $595,200

Estimated total fixed manufacturing overhead cost in assembly department = $390,000 (given)

Estimated variable manufacturing overhead per Machine-hour in Assembly Department = $3 (given)

Estimated Machine-hours in Assembly Department = 68,400 hours (given)

​​​​​​ Estimated total manufacturing overhead in the assembly department = Estimated total fixed manufacturing overhead cost in assembly department + ( Estimated variable manufacturing overhead per Machine-hour in Assembly Department * Estimated Machine-hours in Assembly Department)

= $390,000 + ( $3 * 68,400)

= $390,000 + $,205,200

= $595,200

If you find this answer helpful, please give a thumbs up.