Question 3:Sur Manufacturing is a small manufacturer that uses machine-hours as its activity base forassigned overhead costs to jobs. The company estimated the following amounts for 2015 for thecompany and for Job 50:CompanyOMR 60.000OMR 25,000OMR 72,00090.000Job 50OMR 4,000OMR 2.500Direct materialsDirect laborManufacturing overhead costsMachine hours1,350During 2015, the actual machine-hours totaled 94,000, and actual overhead costs were OMR71,000.Instructions(a) Compute the predetermined overhead rate.(b) Compute the manufacturing overhead applied.(c) Compute the total manufacturing costs for Job 50.

Overheads are the costs which are related to daily operations but are not allocated to any product…

Answered: Instructions (a) Compute the…

Instructions (a) Compute the predetermined overhead rate. (b) Compute the manufacturing overhead applied. (c) Compute the total manufacturing costs for Job 50.

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter7: The Master Budget And Flexible Budgeting

Section: Chapter Questions

Problem 11P: Overhead application rate Creole Manufacturing Inc. uses a job order cost system and standard costs....

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Manufacturing Costs

Manufacturing cost is the total cost of procuring or producing a product. In other words, the manufacturing cost is the cost that an individual or business owner undertakes for the manufacturing of goods.

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