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Boohoohoo Inc. uses a job order costing system. The estimated manufacturing overhead for the year is $12,000,000. The company has decided to allocate the manufacturing overhead to products on the basis of machine hours. The estimated machine hours for the year are 1,000,000 hours.
Job # 998 has accumulated $22,000 of direct materials and $70,000 of direct labour costs. The rate per direct labour hour is $25. To complete Job #998, 2,100 machine hours were used. Problem A. How much manufacturing overhead will be applied to Job # 998 ? Problem B. What is the total manufacturing cost of Job # 998 ?
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