Ahlia Manufacturing is a small textile manufacturer using machine-hours as the single indirect-cost rate to allocate manufacturing overhead costs to the various jobs contracted during the year. The following estimates are provided for the coming year for the company and for the Case High School band jacket job.

Company Case High School Job

Direct materials $53,000 $2,100

Direct labor $15,000 $500

Manufacturing overhead costs $40,000

Machine-hours 80,000 mh 800 mh

Instructions: (2 marks each)

1. For Ahlia Manufacturing, what is the annual manufacturing overhead cost-allocation rate?
2. What amount of manufacturing overhead costs will be allocated to this job?
3. What are the total manufacturing costs of this job?

Answer rating: 100% (QA)

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