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# For maddow manufacturing determine the annual

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Unformatted text preview: llocation base(s). 1.  Seven- Step Job Cos)ng 5.  Calculate an overhead allocation rate: Budgeted Manufacturing Budgeted Manufacturing Overhead Costs = Budgeted Total Quantity of Cost- Allocation Base Overhead Rate 6.  Allocate overhead costs to the job: Budgeted Allocation Rate X Actual Base Activity For the Job 7.  Compute total job costs by adding all direct and indirect costs together. Sample Job Cost Document Sample Job Cost Source Documents Job Cos)ng Summary Job Cos)ng Example Maddow Manufacturing is a small textile manufacturer using machine- hours as the single indirect- cost rate to allocate manufacturing overhead costs to the various jobs contracted during the year. The following estimates are provided for the coming year for the company and for the Patterson High School Science Olympiad Jacket job. Company Patterson High School Job Direct materials \$25,000 \$500 Direct labor \$5,000 \$100 Overhead costs \$20,000 Machine- hours 50,000 mh 800 mh Required: a. For Maddow Manufacturing, determine the annual manufacturing overhead cost- allocation rate. b. Determine the amount of manufacturing overhead costs allocated to the Patterson High School job. c. Determine the estimated total manufacturing costs for the Patterson High School job. Solu)ons: a. Manufacturing overhead cost- allocation rate = \$20,000/50,000 mh = \$0.40 per mh b. OH costs allocated to the Patterson High School job = 800 mh × \$0.40 per mh = \$320 Solu)ons: c. The estimated total manufacturing costs for...
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