What amount of manufacturing overhead costs may be allocated

Assignment Help Financial Accounting

Reference no: EM1378225

Egger Manufacturing (Company) is a small bookbinder using machine-hours (mh) as the single indirect-cost rate to allocate manufacturing overhead costs to the different jobs contracted during the year. The following estimates are provided for the coming year for the Company and for the Sweeny Book Publisher.

Company Sweeny Job
Direct materials $40,000 $1,000
Direct labor $10,000 $200
Manufacturing overhead costs $30,000
Machine-hours 100,000 mh 900 mh

Required:

a. For Egger Manufacturing, evaluate the annual manufacturing overhead cost-allocation rate?

b. What amount of manufacturing overhead costs may be allocated to this job?

c. Evaluate the bid price for the Sweeny job if the company uses a 40 percent markup of total manufacturing costs?

Reference no: EM1378225

Questions Cloud

On the matrix management structure : On the Matrix management structure, you are able to suggest any acceptable method of paying bonuses on profits that want to be divided amongst different departments to teams working

Evaluate the breakeven point in pillows : Evaluate the breakeven point in pillows and evaluate breakeven level in pillows, assuming the selling price goes up by 10 percent, fixed manufacturing costs decline by 10 percent, and other fixed costs decline by $100?

How must a pm decide which problems deserve being reported : How must a PM decide which problems deserve being reported to the top management and which aren't worth the trouble when attempting to Never Surprise the Boss

How a manager lead a failing organization : Discuss how does a manager lead and transform a failing company and create a culture and capability to ensure the success of the Company?

What amount of manufacturing overhead costs may be allocated : For Egger Manufacturing, evaluate the annual manufacturing overhead cost-allocation rate and what amount of manufacturing overhead costs may be allocated to this job?

As a project manager in charge of a software development : As a Project Manager in charge of a software development team what method of organizational structure do you recommend to work within to attain the most effective

The planning committee needs to prepare an aggregate : Wormwood Ltd produces a range of furniture products. The planning committee needs to prepare an aggregate plan for the next six months utilizing the following information

Create journal entries for the actual costs : Create two journal entries for the actual costs incurred - one for variable overhead and one for fixed overhead and create two journal entries to record the variances for August - one for variable overhead and one for fixed overhead.

Find risk & cost associated with redesigning an organization : Throughout times of change, one of the 1st things some leaders do is to reorganize or redesign their organizations. Discuss and explain the advantages and disadvantages of redesigning an organization?

User Account

All Pages