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lubasha [3.4K]
3 years ago
9

Jeremy Corporation estimated manufacturing overhead costs for the year to be $ 550 comma 000. Jeremy also estimated 8 comma 000

machine hours and 3 comma 000 direct labor hours for the year. It bases the predetermined overhead allocation rate on machine hours. On January​ 31, Job 25 was completed. It required 5 machine hours and 1 direct labor hours. What is the amount of manufacturing overhead allocated to the completed​ job?
Business
1 answer:
Andreas93 [3]3 years ago
7 0

Answer:

$343.75

Explanation:

The computation of amount of manufacturing overhead is shown below:-

For computing the amount of manufacturing overhead first we need to find out the predetermined overhead rate which is shown below:-

Predetermined overhead rate = Estimated manufacturing overhead costs ÷ Estimated machine hours

= $550,000 ÷ 8,000

= $68.75 per machine hour

Overhead allocated = Predetermined overhead rate × Machine hours

= $68.75 × 5

= $343.75

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Answer:

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