Business, 01.02.2021 21:20 kydog00

Mansfield, Inc., has two production departments, Assembly and Packaging. The company uses a job-order costing system and computes a predetermined overhead rate in each production department. The predetermined overhead rate in the Assembly Department is based on machine hours (MHs) and it is based on direct labor-hours (DLHs) in the Packaging Department. At the beginning of the year, the company made the following estimates: Assembly Packaging
Direct laborâ€”hours 5,200 62,000
Machine-hours 68,400 11,900
Total fixed manufacturing overhead cost $390,000 $4,19,000
Variable manufacturing overhead per DLH $3.75
Variable manufacturing overhead per MH $3.0

Required:
a. What is the estimated total manufacturing overhead in the Assembly Department?
b. What is the predetermined overhead rate for the Packing Department?

Answers: 2

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Mansfield, Inc., has two production departments, Assembly and Packaging. The company uses a job-orde...

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