Markham Company makes two products: Basic Product and Deluxe Product. Annual production and sales are 2,400 units of Basic Product and 2,000 units of Deluxe Product. The company has traditionally used direct labor-hours as the basis for applying all manufacturing overhead to products. Basic Product requires 0.3 direct labor hours per unit and Deluxe Product requires 0.6 direct labor hours per unit. The total estimated overhead for next period is $99,385.

Instructions are listed below.

Explanation:

Giving the following information:

Basic:

Production in units= 2,400

Direct labor hours required= 0.3

Total direct labor hours= 720

Deluxe:

Production in units= 2,000

Direct labor hours required= 0.6

Total direct labor hours= 2,000*0.6= 1,200

The total estimated overhead for the next period is $99,385.

We need to allocate overhead based on direct labor hours.

Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Estimated manufacturing overhead rate= 99,385/ (720 + 1,200)= $51.763 per direct labor hour

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Basic:

Allocated MOH= 51.763*720= $37,269.36

Deluxe:

Allocated MOH= 51.763*1,200= $62,115.6

1   all nations face the problem of scarcity because there are limited resources and unlimited wants. nations do not have enough factors of production to produce everything that their population wants. entrepreneurial resources initiate businesses to make new goods and services; labor resources produce goods and services.

2 there are four factors of production: natural resources, labor resources, capital resources, and entrepreneurial resources. natural resources are raw materials from nature that are used to produce goods. trees, water, and grains are natural resources. some natural resources, such as wheat and cattle, are renewable

3 wants

things that you do not need to have in order to survive, but would like to have

needs

things that you must have in order to survive

goods

physical products

services

tasks that a business perform for customers

resources

items that people can use to make or obtain what they need or want

determine

to settle or decide by choice of alternatives or possiblities

4 i really dont know

answer; experimentation;