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A partial listing of costs incurred during March at Febbo Corporation appears below: The total of the manufacturing overhead costs listed above for March is: A) $68,000 B) $35,000 C) $516,000 D) $293,000 Given the cost formula, Y = $16,000 + $3.40X, total cost for an activity level of 4,000 units would be: A) $13,600 B) $3,600 C) $19,600 D) $16,000 Reamer Corporation uses a predetermined overhead rate based on machine-hours to apply manufacture overhead to jobs. The Corporation has provided the following estimated costs for next year: Reamer estimates that 500 direct labor-hours and 1,000 machine-hours will be worked during the yea predetermined overhead rate per hour will be: A) $6.80 per machine-hour B) $6.00 per machine-hour C) $3.00 per machine-hour D) $3.40 per machine-hour
Expert Answer
| MANUFACTURING OVERHEAD COST | ||
| Factory supplies | $9,000 | |
| Factory depreciation | $33,000 | |
| indirect labor | $26,000 | |
| Total manufacturing overhead | $68,000 | |
Answer:
- $68,000
16. Total cost for an activity level of 4,000 units:
Y=$16,000+$3.40X
Y=$16,000+$(3.4*4,000)
Y=$16,000+$13,600
Y=$29,600
17.
| MANUFACTURING OVERHEAD COST | |
| Salary of production supervisor | $2,000 |
| Indirect materia; | $400 |
| Rent on factory equipment | $1,000 |
| Total manufacturing overhead | $3,400 |
| Per machine hour=(3400/1000) | $3.40 |
Answer:
D) $3.40 per machine -hour
