Melbourne Resources Provides the Following Data to Enable You to Calculate

question 45

Essay

Melbourne Resources provides the following data to enable you to calculate overhead rates: Machining Department Overhead is $15,000, which is to be allocated on estimated machine hours of 25,000. The rate per Machine Hour would be ________. If Machining cost is to be allocated to three jobs which consumed A = 3,000 hours, B = 4,000 hours, and C = 1,000 hours respectively; then Job A should be charged $ ________ Job B should be charged $ ________; and Job C $
________.

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Definitions:

Inventory Costing

The process of assigning costs to inventory items and determining cost of goods sold, using methods like FIFO, LIFO, or weighted average.

Physical Inventory

A count of all the physical goods and materials in stock at a business, used to verify records and account balances.

Net Income

The remaining profit for a company after subtracting total expenses, taxes, and costs from its total income.

Items Count

A measure or total of individual things or components.