Manchester Ltd

question 13

Essay

Manchester Ltd. uses a job-order costing system and a predetermined overhead rate based on machine hours.
At the beginning of the year, the company estimated manufacturing overhead for the year would be £135,000 and 9,000 machine hours would be used.
The following information pertains to December of the current year:
Actual manufacturing overhead costs incurred in December were £31,000.
Required:

a.
Compute the predetermined overhead application rate.
b.
Determine the total cost associated with each job.

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Definitions:

Sales Goals

Targets set for a sales team or individual salesperson concerning the volume of sales or revenue to be achieved within a specific period.

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Push Strategy

A marketing approach that involves taking the product directly to the customer via whatever means to ensure the customer is aware of your brand at the point of purchase.

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Motivators or rewards designed to drive people towards certain behaviors or actions, often used in sales and employee performance.