Maria Magneta Corp. projects total manufacturing overhead of $4.0 million for th
ID: 2393299 • Letter: M
Question
Maria Magneta Corp. projects total manufacturing overhead of $4.0 million for the year, $2.5 million of which is for factory supervisors' salaries and benefits. The remainder is for factory supplies and security.
The company allocates the supervisors' salaries and benefits based on direct labor hours.
Factory supplies and security is allocated based on machine hours.
The following are projected:
25,000 direct-labor hours
20,000 machine hours
a) Determine the overhead allocation rate for the factory supervisors' salaries and benefits. Show your work.
b) Determined the overhead allocation rate for factory supplies and security. Show your work.
c) Job #347 used 100 direct labor-hours and 80 machine hours. Direct materials were $5,000. Direct labor costs $85 per hours. What was the total manufacturing cost of Job #347? Show your work.
Explanation / Answer
Rreq a: Estimated Factory supervisor salaries and benefits 2500000 Divide: Estimated DLH 25000 OH rate per DLH 100 Req b: Estimated Factory Supplies and Security 1,500,000 Divide: Estimated MH 20000 Ohh rate per MH 75 Req c: Total Manufacturing cost of Job 347: Material 5000 Labour (100 DLH @85) 8500 Factory supervisor salaries and benefits OH applied 10000 (100 DLH @100) factory supplies OH applied (80 MH @75) 6000 Total Manufacturing cost of Job 347: 29500