Question

Bart Corp uses a normal job-order costing system with overhead applied plantwide to products on the...

Bart Corp uses a normal job-order costing system with overhead applied plantwide to products on the basis of direct labor hours. For the upcoming year, Bart Corp estimated total fixed manufacturing overhead cost at \$100,000 total estimated manufacturing overhead per unit of \$3 per direct labor hour, and total direct labor hours of 50,000.

A.Calculate the Predetermined rate for Bart Corp.

B. Calculate the Estimated Total Manufacturing Overhead for Bart Corp.

Total fixed manufacturing overhead = \$100,000

Estimated manufacturing overhead rate = \$3 per direct labor hours

Estimated direct labor hours = 50,000

A.

= \$3 per direct labor hours

The Predetermined rate for Bart Corp.= \$3 per direct labor hours

B.

Estimated total manufacturing overhead = Estimated direct labor hours x Predetermined overhead rate

= 50,000 x 3

= \$150,000

The Estimated Total Manufacturing Overhead for Bart Corp = \$150,000

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