Estimated total machine-hours used Estimated total fixed manufacturing overhead Estimated variable manufacturing overhead per machine-hour Molding...

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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

Answer #1

Estimated machine hours of molding department = 2,500

Estimated variable manufacturing overhead per machine hour of molding department = $1.40

Estimated Total fixed manufacturing overhead of molding department = $10,000

Predetermined overhead rate for molding department = Estimated variable manufacturing overhead per machine hour of molding department + Estimated Total fixed manufacturing overhead of molding department/ Estimated machine hours of molding department

= 1.40+ 10,000/2,500

= 1.40+4

= $5.40 per machine hour

Estimated machine hours of fabrication department = 1,500

Estimated variable manufacturing overhead per machine hour of fabrication department = $2.20

Estimated Total fixed manufacturing overhead of fabrication department = $15,000

Predetermined overhead rate for fabrication department = Estimated variable manufacturing overhead per machine hour of fabrication department + Estimated Total fixed manufacturing overhead of fabrication department/ Estimated machine hours of fabrication department

= 2.20+15,000/1,500

= 2.20+10

= $12.20 per machine hour

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Answer 2

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