Reference no: EM132929599

Problem - Given

Direct material (16,000 lb.) $80,000

Direct labor (@ $10/hr.) 200,000

Indirect material 12,000

Indirect labor 22,000

Sales commissions 34,000

Factory administration 16,000

Non factory administrative expenses 20,000

Other manufacturing overhead* 80,000

*Provides for operating 40,000 machine hours.

a. Calculate the predetermined manufacturing overhead rate for the coming year for each of the following application bases: (1) direct labor hours, (2) direct labor costs, and (3) machine hours.

b. For each item in requirement a, determine the proper application of manufacturing overhead to Job 63, to which 16 direct labor hours, $150 of direct labor cost, and 40 machine hours have been charged.