Question

Sinclair Company manufactures a line of lightweight running shoes. CEO
Andrew Sinclair estimated that the company would incur $2,500,000 in manufacturing overhead during the coming year. Additionally, he estimated the company would operate at a level requiring 200,000 direct labor hours and 500,000 machine hours.

Required
a. Assume that Sinclair Company uses direct labor hours as its manufacturing overhead application base. Calculate the company’s predetermined overhead rate.
b. Assume that job 4375 required 200 direct labor hours to complete. How much manufacturing overhead should be applied to the job?
c. Assume that Sinclair Company uses machine hours as its manufacturing overhead application base. Calculate the company’s predetermined overhead rate.
d. Assume that job 4375 required 550 machine hours to complete. How much manufacturing overhead should be applied to the job?



$1.99
Sales15
Views801
Comments0
  • CreatedFebruary 21, 2014
  • Files Included
Post your question
5000