Answer the following questions using the information below:
Wagga Wagga Textiles is a small textile manufacturer using machine-hours as the single indirect-cost rate to allocate manufacturing overhead costs to the various jobs contracted during the year.The following estimates are provided for the coming year for the company and for the Tumut Brass Band band jacket job.
$$\begin{array} { l c c }
\text { Company } & \text { Tumut Brass } & \text { Band Job } \
\text { Direct materials } & \$ 40000 & \$ 1000 \
\text { Direct labour } & \$ 10000 & \$ 200 \
\text { Manufacturing overhead costs } & & \$ 30000 \
\text { Machine-hours } & 100000 \mathrm { mh } & 900 \mathrm { mh }
\end{array}$$
-What amount of manufacturing overhead costs will be allocated to this job?

Question

Answer the following questions using the information below:
Wagga Wagga Textiles is a small textile manufacturer using machine-hours as the single indirect-cost rate to allocate manufacturing overhead costs to the various jobs contracted during the year.The following estimates are provided for the coming year for the company and for the Tumut Brass Band band jacket job.
 $$\begin{array} { l c c } 
\text { Company } & \text { Tumut Brass } & \text { Band Job } \
\text { Direct materials } & \$ 40000 & \$ 1000 \
\text { Direct labour } & \$ 10000 & \$ 200 \
\text { Manufacturing overhead costs } & & \$ 30000 \
\text { Machine-hours } & 100000 \mathrm { mh } & 900 \mathrm { mh }
\end{array}$$
-What amount of manufacturing overhead costs will be allocated to this job?

Quizplus · Accepted Answer

The manufacturing overhead cost rate is $30,000 / 100,000 mh = $0.30 per mh. The Tumut Brass Band job will be allocated $0.30 x 900 mh = $270 of manufacturing overhead costs.

Answer the Following Questions Using the Information Below: Wagga Wagga

Answer the Following Questions Using the Information Below:
Wagga Wagga