Question

Ikerd Company applies manufacturing overhead to jobs on the basis of machine hours used. Overhead costs are estimated to total $295,865 for the year, and machine usage is estimated at 125.900 hours. For the year, $317,945 of overhead costs are incurred and 130,700 hours are used. 1. manufacturing overhead rate

2. overhead assigned

Answer 1

The manufacturing overhead rate can be calculated by dividing the estimated overhead costs by the estimated machine hours. The overhead assigned to a job can be calculated by multiplying the actual machine hours used by the manufacturing overhead rate.

Step-by-step explanation:

To calculate the manufacturing overhead rate, you need to divide the estimated overhead costs by the estimated machine hours. In this case, the manufacturing overhead rate would be:

Manufacturing Overhead Rate = Estimated Overhead Costs / Estimated Machine Hours

Plugging in the given values:

Manufacturing Overhead Rate = $295,865 / 125,900 hours

To calculate the overhead assigned to a particular job, you need to multiply the actual machine hours used by the manufacturing overhead rate. In this case, the overhead assigned would be:

Overhead Assigned = Actual Machine Hours Used * Manufacturing Overhead Rate

Plugging in the given values:

Overhead Assigned = 130,700 hours * Manufacturing Overhead Rate