Answer:
a. $21 per machine hour
b. $4,855
Explanation:
a. The calculation for the plantwide predetermined overhead rate is detailed below:
Plantwide predetermined overhead rate formula is as follows:
= Variable overhead cost rate for each machine hour + Fixed overhead cost rate for each machine hour
= $2 + (Fixed manufacturing overhead cost ÷ Estimated machine hours)
= $2 + ($4,275,000 ÷ 225,000 machine hours)
= $2 + $19
= $21 per machine hour
b. The total manufacturing cost assigned is
Particulars Amount
Direct materials $1,702
Direct labor $1,221
Variable manufacturing overhead $168
(84 × $2)
Total variable cost $3,091
Add:
Fixed manufacturing overhead
(84 × $21) $1,764
Total manufacturing cost assigned
to Job P90 $4,855
