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The company XOXO is specialized in producing treadmills. The company allocates manufacturing overhead based on direct labor hours. XOXO estimated a total of $4,600 of manufacturing overhead that can be dispatched on all jobs. Moreover, the total direct labor hours that has been recorder during the period raises up to 460 hours.
Job 12 consists of 30 sets of treadmills. The company's records show that the following direct costs were requisitioned for Job 12:
Electronic parts: 40 units at $20 per unit
Plastic: 10 kilograms at $10 per kilogram
Labor hours: 60 hours at $25 per hour
Requirement:
Question 1. Calculate the predetermined manufacturing overhead (MOH) rate
Question 2. Analyze the cost per set (draw a table)
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