Question 3: Sur Manufacturing is a small manufacturer that uses machine- hours as its activity base for assigned overhead costs to jobs. The company estimated the following amounts for 2015 for the company and for Job 50: Company Direct materials Job 50 OMR 60,000 OMR 25,000 OMR 4,000 OMR 2,500 Direct labor Manufacturing overhead costs Machine hours OMR 72,000 90,000 1,350 During 2015, the actual machine-hours totaled 94,000, and actual overhead costs were OMR 71,000. Instructions (a) Compute the predetermined overhead rate. (b) Compute the manufacturing overhead applied. (e) Compute the total manufacturing costs for Job 50.

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ISBN:9781259964947
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Question 3:
Sur Manufacturing is a small manufacturer that uses machine-
hours as its activity base for assigned overhead costs to jobs.
The company estimated the following amounts for 2015 for the
company and for Job 50:
Company
Direct materials
Job 50
OMR 60,000
OMR 4,000
OMR 2,500
Direct labor
OMR 25,000
Manufacturing overhead costs
90,000
OMR 72,000
1,350
Machine hours
During 2015, the actual machine-hours totaled 94,000, and
actual overhead costs were OMR 71,000.
Instructions
(a) Compute the predetermined overhead rate.
(b) Compute the manufacturing overhead applied.
(e) Compute the total manufacturing costs for Job 50.
Transcribed Image Text:Question 3: Sur Manufacturing is a small manufacturer that uses machine- hours as its activity base for assigned overhead costs to jobs. The company estimated the following amounts for 2015 for the company and for Job 50: Company Direct materials Job 50 OMR 60,000 OMR 4,000 OMR 2,500 Direct labor OMR 25,000 Manufacturing overhead costs 90,000 OMR 72,000 1,350 Machine hours During 2015, the actual machine-hours totaled 94,000, and actual overhead costs were OMR 71,000. Instructions (a) Compute the predetermined overhead rate. (b) Compute the manufacturing overhead applied. (e) Compute the total manufacturing costs for Job 50.
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