Answer:
Instructions are listed below.
Explanation:
Giving the following information:
Precision Company estimates its machine-hour requirements for the four quarters to be 35,000 hours, 20,000 hours, 15,000 hours, and 30,000 hours respectively. The variable manufacturing overhead rate is $4 per machine-hour. The fixed manufacturing overhead is $50,000 per quarter, which includes $20,000 of depreciation expense.
1) Total hours= 100,000 hours
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Allocated MOH= 100,000*4= $400,000
2) Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Total fixed overhead= 50,000*4= 200,000
Estimated manufacturing overhead rate= 200,000/ 100,000= $2 per hour
