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Estimated total machine-hours used Estimated total fixed manufacturing overhead Estimated variable manufacturing overhead per
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Answer #1

Solution:

Predetermined overhead rate = Estimated total overhead / Estimated machine hours = (2500*$1.40 + 1500*$2.20 + $25,000) / 4000

= $7.95 per machine hour

Computation of overhead applied - Plantwide overhead rate
Particulars Job Q
Actual machine hours 1700
Overhead rate $7.95
Overhead applied to jobs $13,515.00
Particulars Job Q
Direct Material $8,000
Direct Labor $7,500
Manufacturing overhead $13,515
Total Manufacturing cost $29,015
Particulars Job Q
Total Manufacturing cost $29,015.00
Nos of units 30
Unit product cost $967
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