## Answers

Job P | Job Q | |

Manufacturing overhead applied [Pre-determined overhead rate x Actual machine hours used] | $71,675 [$11.75 x 6,100 hours] | $64,625 [$11.75 x 5,500 hours] |

.

.

Working note - Calculation of predetermined overhead rate | |||

Molding | Fabrication | Total | |

Estimated total machine-hours used (a) | 2,500 | 1,500 | |

Estimated variable manufacturing overhead per machine-hour (b) | $3.30 | $4.10 | |

Estimated variable manufacturing overhead cost (c = a x b) | $8,250 | $6,150 | $14,400 [$8,250 + $6,150] |

Estimated total fixed manufacturing overhead (d) | $32,600 | ||

Estimated total manufacturing overhead (e = c + d) | $47,000 | ||

Estimated total machine hours (f) | 4,000 | ||

Predetermined overhead rate (e / f) | $11.75 |

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