EDIT Added in DATA

Estimated manufacturing Estimated quantity Predetermined

overhead costs of allocation base overhead rate

Direct labor hours $1,200,000 50,000 $24.00 per DL hour

Direct labor dollars $1,200,000 $1,000,000 120% of DL cost

Machine hours $1,200,000 40,000 $30.00 per MH

1. Determine the total manufacturing overhead allocated to

AbbottAbbott's manufacturing jobs assuming that the company actually used 50,300

direct labor hours.

Enter the formula and compute the total manufacturing overhead allocated to

AbbottAbbott's

manufacturing jobs.

					Manufacturing
		x		=	overhead allocated
		x		=

2. Determine the total manufacturing overhead allocated to Abbott's manufacturing jobs assuming that the company actually incurred $1,025,000

of direct labor cost.

Enter the formula and compute the total manufacturing overhead allocated to

Abbott manufacturing jobs. (Enter whole percentages as a decimal to two places, X.XX.)

					Manufacturing
		x		=	overhead allocated
		x		=

3. Determine the total manufacturing overhead allocated to Abbott's

manufacturing jobs assuming that the company actually ran the machines 39,450 hours.

Enter the formula and compute the total manufacturing overhead allocated to Abbott

manufacturing jobs.

					Manufacturing
		x		=	overhead allocated
		x		=

4. Briefly explain what you have learned about the total manufacturing overhead allocated to production.

The total amount of manufacturing overhead allocated during the year is dependant upon two factors

the allocation base used and the actual manufacturing overhead for the year.

the allocation base used and the actual quantity of the base used.

the allocation base used and the projected quantity of the base used.

As a result, a company could either overallocate or underallocate manufacturing overhead depending on

the allocation base used and the actual manufacturing overhead for the year.

the allocation base used and the actual quantity of the base used.

the allocation base used and the projected quantity of the base used.

Upper N & Upper DN & D Appliance provides repair services for all makes and models of home appliances. Upper N & Upper DN & D Appliance charges customers for labor on each job at a rate of $ 54$54 per hour. The labor rate is high enough to cover actual technician wages of $ 16$16 per hour, to cover shop overhead (allocated at a cost of $ 12$12 per hour), and to provide a profit. The company charges the customer "at cost" for parts and materials. A recent customer job consisted of $ 45$45 in parts and materials and 55 hours of technician time.

1. What was Upper N & Upper DN & D Appliance's cost for this job? Include shop overhead in the cost calculation.

2. How much was charged to the customer for this repair job?

1. What was

Upper N & Upper DN & D

Appliance's cost for this job? Include shop overhead in the cost calculation.

Shop overhead
Total job cost

2. How much was charged to the customer for this repair job?

Billed to customer

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Use the high-low method to determine the variable and fixed cost components of Lube minus for minus LessLubeforLess's operating costs. Use this information to project the monthly operating costs for a month in which the company performs 3 comma 7003,700 oil changes.

Month

Number of Oil Changes

Operating Expenses

January. . . . .

3,500

$36,800

February. . . .

2,900

$32,800

March. . . . . .

3,100

$33,800

April. . . . . . .

3,000

$33,300

May. . . . . . .

3,900

$37,800

June. . . . . . .

3,200

$34,300