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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. Problem A. What is the pre-determined manufacturing overhead rate that will be used to apply manufacturing overhead to products? Job # 999 has accumulated $35,000 of direct materials and $5,000 of direct labour costs. The rate per direct labour hour is $25. To complete Job # 999, 1,100 machine hours were used. Problem B. How much manufacturing overhead will be applied to Job # 999 ? Problem C. What is the total manufacturing cost of Job # 999?
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