Question

Webber fabricating estimated the following annual costs.
Expected annual direct labor hours......... 4.0,000
Expected annual direct labor cost........... $ 625,000
Expected machine hours............. 20,000
Expected material cost for the year........... $ 800,000
Expected manufacturing overhead............ $1,000,000

Required
a. Calculate overhead allocation rates using each of the four possible allocation bases provided.
b. Determine the cost of the following job (number 253) using each of the four overhead allocation rates.
Job 253
Direct materials............ $3,000
Direct labor (150 hrs @ $1 2Jhr) ..... $1,800
Machine hours used........... 150



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  • CreatedSeptember 12, 2013
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