Reference no: EM132770055

XX Products uses a job-costing system with two direct-cost categories (direct materials and direct manufacturing labor) and one manufacturing overhead cost pool. XXX allocates manufacturing overhead costs using direct labour hours as the basis. Austin provides the following information: The direct cost details for Job No. 500 are as follows:

Information Estimated Costs for 2015 ($)
Direct Materials 40,000
Direct Labour 30,000

Total Overheads for the company for the year 2015 has been estimated as

Manufacturing overhead costs 540,000

The total number of direct labour hours estimated to be used by the company for the year 2015 will be 27,000 hours

Direct labour hours to be used for Job No. 500 will be 4000 hours

Problem 1: What is the Budgeted Manufacturing Rate?

Select one:

A. 40
B. 30
C. 50
D. 20