QUESTION 1 You work for Thunderduck Custom Tables Inc. This is the first month o

Question

QUESTION 1 You work for Thunderduck Custom Tables Inc. This is the first month of operations. The company designs and manufactures specialty tables. Each table is specially customized for the customer. This month, you have been asked to Step 1. develop and manufacture two new tables for customers. You will design and build the tables. This is a no nail, no screw and no glue manufacturing (no indirect materials used). You will be keeping track of the costs incurred to manufacture the tables. The cost of the direct materials that can be used to manufacture the table are as follows. These cost are on a per unit basis. Table Top Table Leg Drawer 1,500.00 $ 400.00 $350.00 Assume a $25 per hour wage rate to the assembly employees. The company uses a job order costing system and applies manufacturing overhead to jobs based on direct labor hours. The company estimates that there will be 12 direct labor hours worked during the month The estimated manufacturing overhead cost for the month is: a. Factory supervisor salary per month b. Rent for the factory per month c. Depreciation of factory equipment per month $ 2.500.00 $ 1,100.00 Total Estimated manufacturing overhead $ 4,200.00 What is the predetermined manufacturing overhead rate?

Explanation / Answer

predetermined overhead rate Formula: Estimated manufacturing overhead/estimated direct labor hours 4,200/12 350 overhead rate = $350 per direct labor hours

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