a. allocates manufacturing overhead based on machine hours.
b. estimated 12,000,000 machine hours and $93,000,000 of manufacturing overhead costs.
c. Actually used 16,000,000 machine hours and incurred the following actual costs:
|
Indirect labor |
$11,000,000 |
|
Depreciation on plant |
48,000,000 |
|
Machinery repair |
11,000,000 |
|
Direct labor |
75,000,000 |
|
Plant supplies |
6,000,000 |
|
Plant utilities |
7,000,000 |
|
Advertising |
35,000,000 |
|
Sales commissions |
27,000,000 |