Sambell Manufacturing uses a predetermined manufacturing overhead rate to allocate overhead to individual jobs. At the beginning of the year, the company expected to incur the following:

Required:
1. Compute Sambell's indirect cost allocation rate based on labour cost.
2. Compute Sambell's indirect cost allocation rate based on machine hours.
3. How much overhead was allocated during the year if the allocation base was direct labour cost?
4. How much manufacturing overhead was incurred during the year?

Question

Sambell Manufacturing uses a predetermined manufacturing overhead rate to allocate overhead to individual jobs. At the beginning of the year, the company expected to incur the following:
  
Required:
1. Compute Sambell's indirect cost allocation rate based on labour cost.
2. Compute Sambell's indirect cost allocation rate based on machine hours.
3. How much overhead was allocated during the year if the allocation base was direct labour cost?
4. How much manufacturing overhead was incurred during the year?

Quizplus · Accepted Answer

The Answer of Sambell Manufacturing uses a predetermined manufacturing overhead rate to allocate overhead to individual jobs. At the beginning of the year, the company expected to incur the following:
  
Required:
1. Compute Sambell's indirect cost allocation rate based on labour cost.
2. Compute Sambell's indirect cost allocation rate based on machine hours.
3. How much overhead was allocated during the year if the allocation base was direct labour cost?
4. How much manufacturing overhead was incurred during the year?

Sambell Manufacturing Uses a Predetermined Manufacturing Overhead Rate to Allocate