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Calculate overhead cost allocation rate, estimated total Manufacturing costs.
Fox Manufacturing is a small textile manufacturer using machine-hours as the single indirect-cost rate to allocate manufacturing overhead costs to the various jobs contracted during the year. The following estimates are provided for the coming year for the company and for the Maize High School Science Olympiad Jacket job.
Company
Maize High School Job
Direct materials
$50,000
$500
Direct manufacturing labor
$10,000
$100
Manufacturing overhead costs
$40,000
Machine-hours
100,000 mh
800 mh
Required:
a)For Fox Manufacturing, determine the annual manufacturing overhead cost-allocation rate.
b)Determine the amount of manufacturing overhead costs allocated to the Maize High School job.
c)Determine the estimated total manufacturing costs for the Maize High School job.
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