Ask Question
15 December, 23:17

Jeremy Corporation estimated manufacturing overhead costs for the year to be $500,000. Jeremy also estimated 8,000 machine hours and 2,000 direct labor hours for the year. It bases the predetermined overhead allocation rate on machine hours. On January 31, Job 25 was completed. It required 6 machine hours and 1 direct labor hour. What is the amount of manufacturing overhead allocated to the completed job? (Round your intermediate calculations to one decimal place.)

+4
Answers (1)
  1. 16 December, 02:52
    0
    Allocated overhead = $375

    Explanation:

    Giving the following information:

    Jeremy Corporation estimated manufacturing overhead costs for the year to be $500,000. Jeremy also estimated 8,000 machine hours and 2,000 direct labor hours for the year. It bases the predetermined overhead allocation rate on machine hours.

    On January 31, Job 25 was completed. It required 6 machine hours and 1 direct labor hour.

    First, we need to calculate the predetermined overhead rate:

    predetermined overhead rate = total estimated overhead for the period / total amount of allocation base

    predetermined overhead rate = 500,000/8000 = $62.5 per machine hour

    Allocated overhead = predetermined overhead rate * actual hours = 62.5 * 6 = $375
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Jeremy Corporation estimated manufacturing overhead costs for the year to be $500,000. Jeremy also estimated 8,000 machine hours and 2,000 ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers