Comfort 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 Winton High School band jacket job.

Company Winton High School Job
Direct materials $40,000 $2,000
Direct labor $10,000 $400
Manufacturing overhead costs $45,000
Machine-hours 100,000 mh 900 mh

For Comfort Manufacturing, what is the annual manufacturing overhead cost-allocation rate?

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andromache andromache · Answer 1 · 2020-04-07T04:40:40+02:00

Answer:

$0.45

Explanation:

The computation of the annual manufacturing overhead cost-allocation rate is shown below:

Annual manufacturing overhead cost allocation rate is

= Manufacturing overhead costs ÷ Machine hours

= $45,000 ÷ 100,000 machine hours

= $0.45

By dividing the Manufacturing overhead costs by the machine hours we can get the annual manufacturing overhead cost-allocation rate

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tallinn tallinn · Answer 2 · 2022-04-07T12:23:26+02:00

"When The annual manufacturing overhead cost-allocation rate is $0.45. To understand more information check below".

The Calculation of the annual manufacturing overhead cost-allocation rate is shown below are:

Then The Annual manufacturing overhead cost allocation rate is

After that, = Manufacturing overhead costs ÷ Machine hours

Then, = $45,000 ÷ 100,000 machine hours

Therefore, = $0.45

Now, By dividing the Manufacturing overhead costs by the machine hours Then we can get the annual manufacturing overhead cost allocation rate.

Find more information about Annual manufacturing here:

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