Question

Calculator Summer Marvufacturing has four categories of overhead. The four categories and expected overhead costs for each category for next year are listed as follows: Maintenance Materials handling Setups Inspection $255.000 125.000 30,000 105,000 Currently, overhead is applied using a predetermined overhead tate based upon budgeted direct later hours. 100.000 direct labor hours we budgeted for next year The company has been asked to submit a bid for a proposed job. The plant manager feels that in this job would new business in the years as we upon full manufacturing cost plus 10 percent. Estimates for the proposed job are as follows: Direct materials Direct labor (6.000 hours) Number of material moves Number of inspections Number of setups Number of machine hours $15.000 $12,000 100 120 4.000 The plant manager has head of a new way of applying overed that uses cost pools and tyders. Expected activity for the four activity dwers that would be used Machine hours Material moves Setups Quality inspections 20.000 3.000 12.000 Hour Norton licence 2020 5 deces built in VPNHS What is the attendance to the chose who has All work saved O II luje home orts backspace 46 0 Q & 00 9 7 % 5 6 4 M. OIP

Answer 1

Correct answer----- (d) $41,200

.

Overhead rate =(255000+125000+30000+105000)/100000 =$5.15 per labor hour

overhead applied= (8000 hours x 5.15) =$41,200