The company uses a predetermined overhead rate based on machine hours. Estimated

Question

  

  

The company uses a predetermined overhead rate based on machine hours. Estimated hours for labor in 2015 were 212,000 and for machines were 128,000.

Calculate the predetermined overhead rate. (Round your answer to 2 decimal places.)

      

Determine the amount of manufacturing overhead applied to Work in Process Inventory during the 2015 period if actual machine hours were 143,000. (Do not round intermediate calculations.)

Applied manufacturing overhead=____________

Griffin, Inc., estimates manufacturing overhead costs for the 2015 accounting period as follows.

Explanation / Answer

Equipment depreciation

Predetermined Overhead rate =m/n =

Griffin Inc Manufacturing Overheads 2015 Details Amt $

Equipment depreciation

191,600   Supplies 20,200   Materials handling 34,000   Property taxes 14,800   Production setup 20,200   Rent 43,600   Maintenance 39,900   Supervisory salaries 288,500 m Total 652,800 n Estimated Machine Hrs 2015               128,000 o

Predetermined Overhead rate =m/n =

                     5.10 per machine hour p Actual machine hous 2015               143,000 Manufacturing Overhead applied in 2015 =o*p= $          729,300

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