Answer:
Instructions are listed below.
Explanation:
Giving the following information:
Total overhead= $120,000.
Direct labor hours of 6,000.
Machine hours of 5,000.
The last job incurred $3,500 in direct material cost, 55 direct labor hours, and 55 machine hours. Wages are paid at $17 per hour.
First, we need to calculate the estimated manufacturing overhead rate for each allocation base.
Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Direct labor:
Estimated manufacturing overhead rate= 120,000/6,000= $20 per direct labor hour
Total cost= 3,500 + 20*55 + 17*55= $5,535
Machine hour:
Estimated manufacturing overhead rate= 120,000/5,000= $24 per machine hour
Total cost= 3,500 + 24*55 + 17*55= $5,755
