Hang-20 Industries (H20) manufactures back country hammocks. As a value leader, the company takes measures to customize its products to boutique outdoor retailers globally. The company’s tag line is ‘Sleep Genius’. Tamara Lin, the owner of the company wants the world to know that the back country with a hammock is far superior than with a tent. With her popular online blog she has convinced back country enthusiasts that hammock users, sleep better, and never have to worry about sleeping on rocky ground. 2. 3. Because the hammocks are made to customer order, H20 uses a job-costing system (using normal costing). The system has two direct cost categories (direct materials and direct manufacturing labour) and one indirect cost pool for manufacturing overhead. Manufacturing overhead costs are allocated using a budgeted rate based on direct manufacturing labour costs. The budget for 2020 was as follows: 

• Direct manufacturing labour $756,000 

• Manufacturing overhead $604,800 At the end of 2020, two jobs were incomplete: APEX201 (total direct manufacturing labour costs were $57,600) and BETA112 (total direct manufacturing labour costs were $36,720) Machine time totaled 654 hours for Job APEX201 and 318 hours for BETA112. Direct materials issued to APEX201 amounted to $68,260. Direct materials for BETA112 came to $18,000. Total charges to the Manufacturing Overhead Control account for the year were $606,200. Direct manufacturing labour charges made to all jobs were $790,000, representing 25,000 direct manufacturing labour-hours (DMLH). There were no beginning inventories. In addition to the ending work-in-process, the ending finished goods showed a balance of $245,400 (including a direct manufacturing labour cost component of $72,000). Sales for 2020 totaled $3,748,800, cost of goods sold was $2,650,000, and marketing costs were $623,900. H20 prices on a cost-plus basis. It currently uses a guideline of cost plus 40% of cost.

1.         Calculate the manufacturing overhead allocation rate.

2.         Calculate the following:

a.         Ending balance of Job APEX201_______________

b.         Work in process ending balance _____________________

c.         Manufacturing overhead applied for the year________________

d.         Cost of goods manufactured________________________