webber fabricating estimated the following annual costs 491687

Allocating Manufacturing Overhead to Jobs

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Webber Fabricating estimated the following annual costs.

Expected annual direct labor hours

40,000

Expected annual direct labor cost

625,000

Expected machine hours

20,000

Expected material cost for the year

800,000

Expected manufacturing overhead

1,000,000

Required

a. Calculate overhead allocation rates using each of the four possible allocation bases provided.

b. Determine the cost of the following job (number 253) using each of the four overhead allocation rates. Job 253 Direct materials $3,000 Direct labor (150 hrs @ $12/hr)

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