## Answers

Predetermined overhead rate = Budgeted Fixed costs/Budgeted Labor hours + Variable rate | |

=1156250/92500 + 0.50 | |

13 | DLH |

Calculation of total cost | |

Direct material | 39,000 |

Direct labor | 30,600 |

Overhead Applied | 4,810 |

Total manufacturing cost | 74,410 |

DLH 1 Predetermined overhead rate = Budgeted Fixed costs/Budgeted Labor hours + Variable rate 2 =1156250/92500 + 0.50 3 =(1156250/92500) + 0.5 4 5 Calculation of total cost 6 Direct material 7 Direct labor 8 Overhead Applied 9 Total manufacturing cost 39000 30600 =370*A3 =SUM(B6:B8)

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