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?
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?
Chapter1: Financial Statements And Business Decisions
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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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