Answers
| 1) | ||||
| White Company | ||||
| Predermined Overhead Rate | ||||
| Departments | ||||
| Cutting | Finishing | |||
| Total Manufacturing Overhead=(A) | $ 5,79,900.00 | $ 7,88,750.00 | ||
| Budgeted base=(B) | 63300 | 77000 | ||
| Predermined Overhead=(A)/(B) | $ 9.16 | Per MH | $ 10.24 | Per DLH |
| Cutting | Finishing | |||
| (Fixed manufacturing overhead+Variable overhead per machine hour*Machine Hour | (Fixed manufacturing overhead+Variable overhead per Direct Labor hour*Direct Labor Hour | |||
| Total Manufacturing Overhead | ($390000+$3*63300) | ($423000+$4.65*77000) | ||
| 2) | White Company | |||
| Manufacturing cost assigned to Job 203 | ||||
| Cutting | Finishing | Total Manufacturing Cost | ||
| Direct Materials | $ 730.00 | $ 380.00 | $ 1,110.00 | |
| Direct Labor cost | $ 39.00 | $ 150.00 | $ 189.00 | |
| Overhead | $ 742.05 | $ 122.92 | $ 864.97 | |
| Total | $ 1,511.05 | $ 652.92 | $ 2,163.97 | |
| Cutting | Finishing | |||
| Overhead | (Machine Hour*Predermined Overhead rate based on machine hour) | (Direct Labor Hour*Predermined Overhead rate based on Direct Labor hour) | ||
| Overhead | (81*$9.16) | (12*$10.24) | ||
| 3) | Yes | |||
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