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Since I last posted in response to Nina's Cost of Goods Manufactured question, I have finished the Managerial Acct. II course with a final mark of A+ and am on to Managerial Acct. III. (God help...

The predetermined overhead rate in the Molding Department is based on machine-hours, and the rate in the Painting Department is based on direct labour cost. At the beginning of the year, the...

What allocation base is indicated.

You need a an allocation base (cost driver).

Also remember that manufacturing overhead does not include adding or deducting the Work in Process inventory....

Direct Materials
Beg: Material Inventory 3,475
Add: Purchased Materials 15,000
Materials available for use 18,475
Deduct: Ending Mat. Inven. 9,500
Raw materials used in...

To find the "direct labour" you need to know the predetermined overhead rate.

In order to find the predetermined overhead rate you also need to know what your allocation base is/will be.

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