Question

Meenach Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on direct labor- hours. The company based its predetermined overhead rate for the current year on 73,000 direct labor-hours, total fixed manufacturing overhead cost of $94,900, and a variable manufacturing overhead rate of $3.60 per direct labor-hour. Recently Job X387 was completed and required 290 direct labor-hours. Required: Calculate the amount of overhead applied to Job X387 (Do not round intermediate calculations.) Overhead applied to Job X387 < Prev 7 of 10 !!! Next

Answer 1

Fixed manufacturing overhead rate Estimated fixed manufacturing overhoud cost Estimated Direct Labour hours $ 94,900 73,000 direct labour hour $_1-30_pey Given, Variable manufacturing overhead rate $ $3.60 -per labour hour. Actual no. of labour hours of Job X 387 = 290 direct labour hours. Therefore, amount of overhead applied to Job X387 variable ott fixed oH. [Actual labour hours Actuallabour hours X х х predetermined rate + predetermined rate af fixedo of Variable OH [ 290X $3:60] + T290 290 x $1.30) - $1.044 + $377 $ 1,421 Please feel free to ask any queries . Thank you.