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pychu [463]
3 years ago
14

Martin Company applies manufacturing overhead based on direct labor hours. Information concerning manufacturing overhead and lab

or for the year follows:
Actual manufacturing overhead $80,000
Estimated manufacturing overhead $75,000
Direct labor hours incurred 4,800
Direct labor hours estimated 5,000

a. Compute the predetermined overhead rate.
b. Calculate the amount of applied manufacturing overhead.
Business
1 answer:
kirza4 [7]3 years ago
5 0

Answer:

Instructions are listed below.

Explanation:

Giving the following information:

Estimated manufacturing overhead $75,000

Direct labor hours incurred 4,800

Direct labor hours estimated 5,000

A) Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Estimated manufacturing overhead rate= 75,000/5,000= $15 per direct labor hour

B) Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Allocated MOH= 15*4,800= $72,000

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ipn [44]

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Answer:

Incremental cost= $61,875

Explanation:

Giving the following information:

Gelb Company currently manufactures 49,500 units per year of a key component for its manufacturing process. Variable costs are $5.15 per unit, fixed costs related to making this component are $75,000 per year, and allocated fixed costs are $70,500 per year. The allocated fixed costs are unavoidable whether the company makes or buys this component. The company is considering buying this component from a supplier for $3.90 per unit

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