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denis-greek
2 months ago
9

Smart Manufacturing budgeted costs for 50,000 linear feet of block are: Fixed manufacturing costs $24,000 per month Variable man

ufacturing costs $16.00 per linear foot Smart installed 40,000 linear feet of block during March. How much is budgeted total manufacturing costs in March?
Business
1 answer:
harina [3.8K]2 months ago
3 0

Answer:

$664,000

Explanation:

Below is the calculation for the budgeted total manufacturing expense:

The total budgeted manufacturing costs can be calculated as

= Fixed costs + Variable costs

= $24,000 + ($16 × 40,000 linear feet of block)

= $24,000 + $640,000

= $664,000

This total is derived by simply adding the fixed and variable expenses so we arrive at the overall budgeted manufacturing cost.

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Reyes Corporation applies overhead using an actual costing approach. Budgeted factory overhead was $266,400, budgeted machine-ho
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Response:

Allocated MOH= $274,320

Clarification:

Providing the following details:

The budgeted factory overhead was $266,400, while the expected machine-hours amounted to 18,500. The actual machine-hours totaled 19,050.

Initially, we must determine the estimated rate for manufacturing overhead. We can then allocate the overhead accordingly.

To find the estimated overhead rate for manufacturing, we should employ the following equation:

Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Estimated manufacturing overhead rate= 266,400/18,500= $14.4 per machine-hour.

Now we can proceed to allocate the overhead:

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Allocated MOH= 14.4*19,050= $274,320

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