Sinclair Company manufactures a line of lightweight running shoes. CEO Andrew Si
ID: 2422901 • Letter: S
Question
Sinclair Company manufactures a line of lightweight running shoes. CEO Andrew Sinclair estimated that the company would incur $3,412,200 in manufacturing overhead during the coming year. Additionally, he estimated the company would operate at a level requiring 235,000 direct labor hours and 541,619 machine hours. Assume that Sinclair Company uses direct labor hours as its manufacturing overhead application base. Calculate the company's predetermined overhead rate. Company's predetermined overhead rate Assume that job 4375 required 280 direct labor hours to complete. How much manufacturing overhead should be applied to the job? Manufacturing overhead applied Assume that Sinclair Company uses machine hours as its manufacturing overhead application base. Calculate the company's predetermined overhead rate. Company's predetermined overhead rate Assume that job 4375 required 600 machine hours to complete. How much manufacturing overhead should be applied to the job? Manufacturing overhead applied sExplanation / Answer
predetermined overhead rate = $3,412,200/ 235,000
= $14.52/DLH
Manufactuirng overhead = 280 *14.52 = $4,065.60
0r 4066
2) overhead rate - $3,412,200/541,619 = $6.30 per unit
MOH = 600*6.30 = $3780
predetermined overhead rate = $3,412,200/ 235,000
= $14.52/DLH
Manufactuirng overhead = 280 *14.52 = $4,065.60
0r 4066
2) overhead rate - $3,412,200/541,619 = $6.30 per unit
MOH = 600*6.30 = $3780