Cavy Company estimates that total factory overhead costs will be $700,077 for the year. Direct labor hours are estimated to be 90,100. a. Compute the predetermined factory overhead rate. Round your answer to the nearest cent. $ per direct labor hour b. Determine the amount of factory overhead applied to Job 456 if the amount of direct labor hours is 1,000 and to Job 888 if the amount of direct labor hours is 3,300. Job 456 $ Job 888 $

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facundobuzzetti facundobuzzetti · Answer 1 · 2020-07-07T03:11:06+02:00

Answer:

Instructions are below.

Explanation:

Giving the following information:

Total factory overhead costs= $700,077

Direct labor hours are estimated to be 90,100.

To calculate the predetermined manufacturing overhead rate we need to use the following formula:

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

Predetermined manufacturing overhead rate= 700,077/90,100

Predetermined manufacturing overhead rate= $7.77 per direct labor hour

Job 456:

direct labor hours= 1,000

Job 888:

direct labor hours= 3,300

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

Job 456=1,000*7.77= $7,770

Job 888= 3,300*7.77= $25,641