FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Chapman Air Supply has two production departments, Assembly and Customizing. The company used the following
estimates to calculate predetermined overhead rates:
Total machine hours
Direct labor hours
Fixed manufacturing overhead
Variable manufacturing overhead per machine hour
Variable manufacturing overhead per labor hour
Overhead rate based on:
Assembly
19,000
4,000
$100,700
$2.00
Customizing
15,000
6,000
$63,000
$3.90
Machine hour
Labor hour
If a Job 354 uses 72.2 machine hours and 100 labor hours, how much manufacturing overhead would be added to
the costs included in Job 354?
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Transcribed Image Text:Chapman Air Supply has two production departments, Assembly and Customizing. The company used the following estimates to calculate predetermined overhead rates: Total machine hours Direct labor hours Fixed manufacturing overhead Variable manufacturing overhead per machine hour Variable manufacturing overhead per labor hour Overhead rate based on: Assembly 19,000 4,000 $100,700 $2.00 Customizing 15,000 6,000 $63,000 $3.90 Machine hour Labor hour If a Job 354 uses 72.2 machine hours and 100 labor hours, how much manufacturing overhead would be added to the costs included in Job 354?
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