What is annual manufacturing overhead cost-allocation rate

Reference no: EM13215438

Bauer Manufacturing uses departmental cost driver rates to allocate manufacturing overhead costs to products. Manufacturing overhead costs are allocated on the basis of machine-hours in the Machining Department and on the basis of direct labor-hours in the Assembly Department. At the beginning of 20X3, the following estimates were provided for the coming year:

Machining Assembly

Direct labor-hours 30,000 60,000

Machine-hours 80,000 20,000

Direct labor cost $500,000 $900,000

Manufacturing overhead costs $420,000 $240,000

The accounting records of the company show the following data for Job #316:

Machining Assembly

Direct labor-hours 120 70

Machine-hours 60 5

Direct material cost $300 $200

Direct labor cost $100 $400

For Bauer Manufacturing, what is the annual manufacturing overhead cost-allocation rate for the Machining Department?

Reference no: EM13215438

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