Homework Answers
Although question is not clearly mentioned, based on the options for the answer, it can be seen that Total manufacturing overheads for Running Apparel is asked for. Accordingly the answer is provided below:
Total manufacturing overheads for Running Apparel are $455600.
Total manufacturing overheads for Running Apparel
= (Direct machine hours used x Overheads rate per machine hour) + (Direct labor hours worked x Overheads rate for direct labor hours)
= (67000 hours x $1.8) + (67000 hours x $5)
= $120600 + $335000
= $455600
Working:
Total Machining department Overheads = Total machine hours x Overheads rate for machine hours
$900000 = (430000 + 70000)hours x Overheads rate for machine hours
Overheads rate for machine hours = $900000 / 500000 hours = $1.8 per machine hour
Similarly,
Total Finishing department Overheads = Total direct labor hours x Overheads rate per direct labor hours
$400000 = (14000 + 66000) hours x Overheads rate per direct labor hours
Overheads rate per direct labor hours = $400000 / 80000 hours = $5 per direct labor hour
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