Answers
- Requirement 1
A | Fixed Overheads | $198,000 | |
B | DLHs | 18000 | |
C = A/B | Fixed Overhead per machine hours | $11.00 | |
D | Variable overhead per machine hours | $1.00 | |
E = C+D | Predetermined Overhead rate | $12.00 | Answer: Requirement 1 |
- Requirement 2
Direct material | $719 | |
Direct labor cost | $177 | |
Overhead allocated [ 7 DLHs x $ 12] | $84 | |
Total manufacturing cost assigned | $980 | Answer: Requirement 2 |
- Requirement 3
Amount charged to Mr Wikes = $ 980 + 30% = $ 1274
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