Question

BBB Company specializes in computer manufacturing. BBB takes many orders from multiple customers per year. For 2019, BBB estimates total manufacturing overhead costs throughout the plant to amount to $900,000. The company anticipates that total direct labor hours worked for all jobs throughout the year will amount to 40,000 hours and also predicts that total machine hours will amount to 60,000 hours. The company uses direct labor hours as its allocation base. Make sure to show all work!!!!

1. Compute the pre-determined overhead rate:

2) Use your answer from Question #1 to solve this question. During the year, BBB has worked on two jobs, which are listed as follows:

                                                            Job 101                                               Job 102

Actual DM Cost                                   $33,000                                                           $47,500

Actual DL Cost                                    $16,700                                                           $22,550

Actual Direct Labor Hours                   1,200                                                   1,900

Actual Machine Hours                            660                                                      426

Units Produced                                         40                                                        50

1. Apply overhead to Jobs 101 and 102.

2. Compute total manufacturing costs for Jobs 101 and 102.

c) Compute unit cost for Jobs 101 and 102.

Answer 1

The answer has been presented in the supporting sheet. For detailed answer refer to the supporting sheet.