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Manufacturing overhead

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Huang Aerospace Corporation manufactures aviation control panels in two departments, Fabrication and Assembly. In the Fabrication department, Huang uses a predetermined overhead rate of $29 per machine-hour. In the Assembly department, Huang uses a predetermined overhead rate of $14 per direct labor-hour. During the current year, Job #X2984 incurred the following number of hours in each department:

Fabrication Assembly
Machine-hours 37 13
Direct labor-hours 4 30

What is the total amount of manufacturing overhead that Huang should have applied to Job #X2984 during the current year?

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Solution Summary

The solution determines what is the total amount of manufacturing overhead that Huang should have applied to Job #X2984 during the current year.

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