Homework Answers
Estimated machine hours of molding department = 2,500
Estimated variable manufacturing overhead per machine hour of molding department = $2.70
Estimated Total fixed manufacturing overhead of molding department = $13,250
Predetermined overhead rate for molding department = Estimated variable manufacturing overhead per machine hour of molding department + Estimated Total fixed manufacturing overhead of molding department/ Estimated machine hours of molding department
= 2.70+ 13,250/2,500
= 2.70+5.3
= $8 per machine hour
Manufacturing overhead applied to Job P = Actual Molding machine hours used in Job P xPredetermined overhead rate for molding department
= 3,000 x 8
= $24,000
Manufacturing overhead applied to Job Q = Actual Molding machine hours used in Job P xPredetermined overhead rate for molding department
= 2,100 x 8
= $16,800
| Job P | Job Q | |
| Manufacturing overhead applied | $24,000 | $16,800 |
Kindly comment if you need further assistance. Thanks‼!
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