Chapter 2, Problem 1F15

To determine

Concept introduction:

Manufacturing overhead: Manufacturing overhead also stated as factory overhead, production overhead is the sum of all the indirect costs which are incurred while manufacturing a product. Manufacturing overhead applies to all the units that are produced in a specific accounting period. As manufacturing overhead includes the costs incurred in the manufacturing facilities other than the cost of direct materials and direct labor, it is stated as an indirect cost.

The company’s predetermined overhead rates in the molding department and fabrication department.