Nautical Footware Inc. manufactures women's boating shoes. Manufacturing overhead is assigned to production on a machine-hour basis. For 2019, it was estimated that manufacturing overhead would total $363,910 and that 27,960 machine hours would be used. Required: a. Calculate the predetermined overhead application rate that will be used for absorption costing purposes during 2019. (Round your answer to 2 decimal places.) Predetermined overhead application rate b. During May, 3,500 pairs of shoes were made. Raw materials costing $6,130 were used, and direct labor costs totaled $9,020. A total of 730 machine hours were worked during the month of May. Calculate the cost per pair of shoes made during May. (Do not round
Nautical Footware Inc. manufactures women's boating shoes. Manufacturing overhead is assigned to production on a machine-hour basis. For 2019, it was estimated that manufacturing overhead would total $363,910 and that 27,960 machine hours would be used. Required: a. Calculate the predetermined overhead application rate that will be used for absorption costing purposes during 2019. (Round your answer to 2 decimal places.) Predetermined overhead application rate b. During May, 3,500 pairs of shoes were made. Raw materials costing $6,130 were used, and direct labor costs totaled $9,020. A total of 730 machine hours were worked during the month of May. Calculate the cost per pair of shoes made during May. (Do not round
Chapter4: Job Order Costing
Section: Chapter Questions
Problem 11PB: When setting its predetermined overhead application rate. Tasty Turtle estimated its overhead would...
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The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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