Manufacturing overhead allocation rate

Reference no: EM13826612

Problem:

XYZ Inc. uses machine-hours as the single indirect-cost rate to allocate manufacturing overhead costs to various jobs. XYZ budgets that it will incur the following amounts during the year: $25,000 in direct materials, $5,000 in direct manufacturing labor, $20,000 in manufacturing overhead, and 50,000 machine hours.

During the year, XYZ works on Job #24 and incurs the following actual costs/usages for Job #24: $500 in direct materials, $100 in direct labor, and 800 machine hours are used.

REQUIRED:

1. Determine XYZ's manufacturing overhead allocation rate.

2. Determine the amount of manufacturing overhead allocated to Job #24.

3. Determine the total cost of Job #24.

4. Prepare any journal entries necessary to account for the direct materials used, direct labor used, and the overhead allocated to Job #24. Assume XYZ pays its employees cash for their services.

Reference no: EM13826612

Questions Cloud

Identifies the allocation and cost of resources : Develop a cost plan for your project that identifies the allocation and cost of resources to your project.

Report on marketing strategies with key concepts : Report on Marketing Strategies with Key Concepts coinciding with Corporate Goals

Explain price elasticity of demand in airline industry : The article from economics and it is deals with the price elasticity of demand and supply in the airline industry. Due to very high fixed costs, it is very difficult for a corporation to enter and exit the airline industry.

Why trade matters in four maps : Why Trade Matters in Four Maps - Please read above article and write your thoughts or any comments

Manufacturing overhead allocation rate : Determine XYZ's manufacturing overhead allocation rate. Determine the amount of manufacturing overhead allocated to Job #24.

Mountain man brewing company: bringing the brand to light : Mountain Man Brewing Company: Bringing the Brand to Light

Incremental free cash flows with income tax rate : If the Natural Candy Co's marginal tax rate is 30%, what are the incremental free cash flows in the second year of this project?

What is going on in the telecoms industry : This article belongs to economics is about the telecom industry during the year 2006-2007. It explores the then situation of telecommunications.

Trends in globalization that future manager should think : This problem in business management and organization is about the trends in globalization that future manager should think about. The three trends are migration, outsourcing and entrepreneurship. These business trends have been described in detail..

User Account

All Pages