The predetermined overhead rates in Assembly and Testing & Packaging are $24. Direct costs were as follows: Direct materials. 99! arrow_forward Literature guides Concept explainers Writing guide Popular textbooks Popular high school textbooks Popular Q&A Business Accounting Business Law Economics Finance Leadership Management Marketing Operations Management Engineering AI and Machine Learning Bioengineering Chemical. Estimated overhead costs for the year are $920,000,. d. Support department. and estimated direct labor hours are 310. Direct materials are added at the beginning of the process. ) The company allocated manufacturing overhead of $119,600 using a. Crane's operations are divided into a metal casting department and a metal finishing department. Q: Crane Fabrication allocates manufacturing overhead to each job using departmental overhead rates. Whether you want to negotiate a salary, plan your. kayleehurst7. $ 44. Question: Crane Fabrication allocates manufacturing overhead to each job using departmental overhead rates. 4-41 Proration of overhead with two indirect cost pools. $$ egin{array}{lr} ext { Budgeted manufacturing overhead costs } & $ 3,800,000 ext. Question: Ryan Fabrication allocates manufacturing overhead to each job using departmental overhead rates. Crane's operations are divided into a metal casting overhead rate of $51 per machine hour, while the finishing department uses a departmental overhead rate of $26 per direct labor hour. Layouts include one or two beams called single- or double-girder designs. Expo manufacturing has two production departments and two support departments. crane fabrication allocates manufacturing overhead – WeiHua Crane, Solution manual of Engineering Economics 7th Ed More Info Water for SemiconductorTo compute the overhead rate, divide your monthly overhead costs by your total monthly sales and multiply it by 100. • estimated 13,000 machine hours and $91,000 of manufacturing overhead costs. The casting department uses a departmental overhead rate of $59 per machine hour, while the finishing department uses a departmental overhead rate of $30 Crane Fabrication allocates manufacturing overhead to each job using departmental overhead rates. Crane's operations are divided into a metal casting department and a metal finishing department. A consultant was hired to study overhead costs, and. The casting department uses a departmental overhead rate of $51 per machine hour, while the finishing department uses a departmental overhead rate of. Crane Fabrication allocates manufacturing overhead to each job using departmental overhead rates. Prepare journal entries to record (a) overhead applied for the Assembly department for February and (b) actual overhead costs used during February. The estimate of annual overhead costs is $540,000. Accounting questions and answers. Crane's operations are divided into a metal casting department and a metal finishing department. $ 125 comma 000$125,000. (20,000 + 12,000). Check the process crane fabrication procedure and get your custom crane now. … A: Compute the total cost of Job A216: Q: Producing Departments / Main Department Servicing Departments Total JK V Jimin Jin Suga P80,000. And he has bought 5 sets of Explosion proof overhead crane. Ryan Fabrication allocates manufacturing overhead to each job using departmental overhead rates. 000 Required: a. Ryan's operations are divided into a metal casting department and a metal finishing department. 35,900 S 38, Manufacturing Overhead 72,500 S 85 Print Done. $475 D. Knight Company reports the following costs and expenses in May. Direct materials 1900 Dir. The company's operations are divided into a casting department and a finishing department. The casting department uses a departmental overhead rate of $51 per machine hour, while the finishing department. 51. cost of goods sold $-64,460 $-100,500. Morris Company allocates manufacturing overhead based on machine hours. The casting department uses a departmental overhead rate. Visit Job Bank to learn more about prevailing wages throughout Canada. The casting department uses a departmental overhead rate of $52 per. The Assembly Department uses a departmental overhead rate of $50 per machine hour, while the Sanding Department uses a departmental overhead rate of $25. crane fabrication allocates manufacturing overhead – WeiHua Crane, Solution manual of Engineering Economics 7th Ed More Info Water for SemiconductorManufacturing overhead is over applied if actual manufacturing overhead costs for a period are greater than the amount of manufacturing overhead cost that was charged to Work in Process. Cast Iron Fabrication allocates manufacturing overhead to each job using departmental overhead rates. The Cutting Department spans about 33,600 square feet and holds assets valued at about $140,000. Direct labor cost. The design department overhead consists of computers and software for computer-assisted design. These cranes can run either on top of girders or. Final answer. … A: Compute the total cost of Job A216: Q: Producing Departments / Main Department Servicing Departments Total JK V Jimin Jin Suga P80,000. The company has two departments: Assembly and Sanding. 009 Finishing Department 12 GUD Expert Solution Q: Crane Fabrication allocates manufacturing overhead to each job using departmental overhead rates. Q: Crane Fabrication allocates manufacturing overhead to each job using departmental overhead rates. In addition, variable selling and administrative expenses are $2 per unit, and fixed selling and. The company used 1,000 hours of processing for Job A15 during the period and incurred actual overhead costs of. Crane's operations are divided into a metal casting department ar a metal finishing department. Crane's operations are divided into a metal casting department and a metal finishing department. The casting department uses a departmental overhead rate of $51 per machine. Exam #2 1. You'll get a detailed solution from a subject matter expert that helps you learn core concepts. Manufacturing Overhead Rate = Overhead Costs /. … A: Compute the total cost of Job A216: Q: Producing Departments / Main Department Servicing Departments Total JK V Jimin Jin Suga P80,000. The company's operations are divided into a casting department and a finishing department. Question: Toole Corporation uses a job order costing system and allocates manufacturing overhead at a rate of $45 per machine hour. Crane Fabrication allocates manufacturing overhead to each job using departmental overhead rates. $ 82. Ryan's operations are divided into a metal casting department and a metal finishing department. The company allocates manufacturing overhead using a single plantwide rate with direct labor hours as the allocation base. Lucas Industries uses departmental overhead rates to allocate its manufacturing overhead to jobs. The casting department uses a departmental overhead. Crane's operations are divided into a metal casting department and a metal finishing department. Crane's operations are divided into a metal casting department and a metalning department. What would be the total production engineering cost per machine-hour, both fixed and variable, at an activity level of 9,900 machine-hours in a month? Assume that this level of activity is within the relevant range. FrontGrade Systems allocates manufacturing overhead based on machine hours. Chan allocates overhead to jobs based on machine hours, and it expects that 100,000 machine hours will be required for the year. Direct labor wages average 10 per hour in each department. What was the amount of direct labor costs? (Round your answer to the nearest cent. A variable cost of a manufactured product. Question: Gell Corporation manufactures computers Assume that Gell allocates manufacturing overhead based on machine hours • estimated 12,000 machine hours and 593,000 of manufacturing overhead costs. And he also says it is really easy to operate our machine, just like step 1, step 2 and step 3. Crane Fabrication allocates manufacturing overhead to each job using departmental overhead rates. Monorail Cranes. $50 × 11 machining hrs = $550 Sanding Dept. Crane Fabrication allocates manufacturing overhead to each job using departmental overhead rates. In manufacturing operations, overhead cranes and jib cranes are most commonly used, with large overhead units frequently built as part of the plant facility during construction. Crane's operations are divided into a metal castingdepartment and a metal finishing department. 85. 107. People working as a crane operator in British Columbia usually earn between $$22. D. 21Crane Sports Inc. Cost of finished goods manufacturing,$8. Total materials costs are $250,025 and equivalent units of production are 36,500; thus, unit materials cost = $250,025 ÷ 36,500 = $6. A consultant was hired to study overhead costs, and. The CAD files and renderings posted to this website are created, uploaded and managed by third-party community members. 50 Variable manufacturing cost per unit $ 11. The durability of the crane parts and crane free you from frequent maintenance. Question: Crane Fabrication allocates manufacturing overhead to each job using departmental overhead rates. direct manufacturing labor-hours. Crano's operations are divided into a metal casting department and a metal finishing department. Overhead Rates Casting $100. Ryan fabrication allocates manufacturing overhead to each job using departemental overhead rates. )Weihua Heavy Duty Crane. The Assembly Department uses a departmental overhead rate of $50 per machine hour, while the Sanding Department uses a departmental overhead rate of $25 per. 000 Actual machine hours 180. 50 per machine hour Allocated manufacturing overhead cost = Predetermined overhead allocation rate × Actual quantity of the allocation base used by each job Allocated manufacturing overhead cost = $62. 00|…Question: Crane Fabrication allocates manufacturing overhead to each job using departmental overhead rates. Accounting questions and answers. te. The casting department uses a departmental overhead rate of $51 per machine hour, while the finishing. Study with Quizlet and memorize flashcards containing terms like Compton Company uses a predetermined overhead rate in applying overhead to production orders on a labor cost basis in Department A and on a machine-hours basis in Department B. … A: Compute the total cost of Job A216: Q: Producing Departments / Main Department Servicing Departments Total JK V Jimin Jin Suga P80,000. Find manufacturing overhead stock images in HD and millions of other close up remote control switch for overhead crane in manufacture workshop. Crane's operations are divided into a metal casting department ar a metal finishing department. (Round your answer to the nearest cent. The c; Bond Industries uses departmental overhead rates to allocate its manufacturing overhead to jobs. 2023-09-19. The company's operations are divided into a casting department and a finishing department. The company allocates manufacturing overhead based on the machine hours each. Ryan fabrication allocates manufacturing overhead to each job using departemental overhead rates. Cooper's Bags Company sells the bags in cases of 1,000 bags. Search for:. $58 per machine hour, while the finishing department uses a departmental overhead rate of. Crane Fabrication allocates manufacturing overhead to each job using departmental overhead rates. Department Finishing Department Direct labor hours used 5 10 Machine hours used from AC 212 at Quinnipiac UniversityQuestion: 12) 12) Crane Fabrication allocates manufacturing overhead to each ob using departmental overhead rates. 2023-09-19. Q: Crane Fabrication allocates manufacturing overhead to each job using departmental overhead rates. Adirondak Marketing Inc. Crane's operations are divided into a metal casting department and a metal finishing department. , Solve for Overhead. allocates overhead using machine hours as the allocation activity. Each connector should require 11 machine hours. Ryan's operations are divided into a metal casting department and a metal finishing department. Total manufacturing cost Unit product cost 1,071 X 2. The casting department uses a departmental overhead rate of $58 per machine hour, while the finishing department uses a departmental overhead rate of $29. Crane Fabrication allocates manufacturing overhead to each job using departmental overhead rates. Find step-by-step Accounting solutions and your answer to the following textbook question: Taylor Company uses normal costing. It allocates manufacturing overhead costs using a budgeted rate per machine-hour. $102. $650. Business College. … A: Compute the total cost of Job A216: Q: he following is taken from Clausen Company’s internal records of its factory with two operating… Q: Crane Fabrication allocates manufacturing overhead to each job using departmental overhead rates. Myers Company uses a flexible budget for manufacturing overhead based on direct labor hours. 25/machine hour C. The casting department uses a departmental overhead rate of $51 per machine hour, while the finishing department uses a departmental overhead rate of. Sales Cost of goods sold Selling and administrative expenses Net income Amount. Employees worked 14 hours to complete the job. Crane's operations are divided into a metal casting department and a metal finishing department. c. During , recorded the following: Data Table: Budgeted manufacturing overhead costs: $4,410,000 Budgeted direct. Product Costs = $392,310. Crane's operations are divided into a metal casting department and a metal finishing. The casting department uses a departmental overhead rate of $51 per machine hour, while the finishing department uses a departmental overhead rate of. The company allocates manufacturing overhead based on the machine hours each job uses. Crane's operations are divided into a metal casting department and a metal finishing department. Cast Iron Fabrication allocates manufacturing overhead to each job using departmental overhead rates. If you need to lift and move heavy equipment at a plant or industrial facility, cranes provide a safe and effective solution. Cast Iron Fabrication allocates manufacturing overhead to each job using departmental overhead rates. Q: Crane Fabrication allocates manufacturing overhead to each job using departmental overhead rates. crane fabrication allocates manufacturing overhead – WeiHua Crane, Solution manual of Engineering Economics 7th Ed More Info Water for SemiconductorTo close the Manufacturing Overhead account directly to Cost of Goods Sold at the end of the period. The casting department uses a departmental overhead rate of $51 per machine hour, while the finishing department uses a departmental overhead rate of. 6 points Save Answer Crane Fabrication allocates manufacturing overhead to each ob using departmental overhead rates. Direct materials are added. Ben Smith, a controller argues for departmental overhead rates to allocate manufacturing overhead costs to products. The casting department uses a departmental overhead rate of $57 per machine hour, while the finishing department uses a departmental overhead rate ofCrane Fabicaton allocates manulacturing ovechead to each job using departmental overhead rates. However, most of approaches concern the crane scheduling in isolation. 100. manufactures two products, A and B. it allocates manufacturing overhead cost using a budgeted rate per machine-hours. $366. The casting department uses a departmental overhead rate of $51 per machine hour, while the finishing department uses a departmental overhead rate of. During the period, the company used 1,200 machine-hours and actually incurred manufacturing overhead costs of $55,000. Accounting questions and answers. The c; Bond Industries uses departmental overhead rates to allocate its manufacturing overhead to jobs. 00 per machine hour. The casting department uses a departmental overhead rate of $56 per machine hour, while the finishing. Gamma Enterprise uses machine-hours as the only overhead cost-allocation base and allocates manufacturing overhead costs based on budgeted rate. Total Cost includes Direct material, Direct labor and applied overhead. Sunland Company allocates manufacturing overhead at $21 per direct labor hour. Accounting questions and answers. Add the two-unit costs to arrive at a total manufacturing cost per. Currently, Cooper's Bags Company uses a single plantwide overhead rate to allocate its $8,597,000 of annual manufacturing overhead. 12) 12) Crane Fabrication allocates manufacturing overhead to each ob using departmental overhead rates. Crane's operations are divided into a metal casting department and a metal finishing department. Job A890 required 4 pounds of direct materials at a cost of $40 per pound. 75 per machine hour • actually used 16,000 machine hours and incurred the following actual. According to the static budget, FrontGrade expected to incur the following: 1,100 machine hours per month (100 connectors × 11 machine hours per connector) $5,500 in variable manufacturing overhead costs $8,250. To calculate the manufacturing overhead allocated to Job A216 using the departmental overhead rates, we need to determine the overhead cost for each department and then multiply it by the respective hours used by the job in each department. Crane Fabrication allocates manufacturing overhead to each job using departmental overhead rates. of 5,000 sq. Adventure Designs makes custom backyard. Crane's operations are divided into a metal castingdepartment and a metal finishing department. Hull Fabrication department rate: $50 per machine hour. If Deltan's total estimated overhead is $450,000 and estimated direct labor is $180,000, determine the amount of overhead to be allocated to finished goods inventory given $20,000 of total actual direct labor cost. Ryan's operations are divided into a metal casting departement and a metal finishing department. Company leadership recently learned that its costing system may be too simple for its operations, and that job costs may be. 11 Sprint 9:09 PM Done 13 of 14 read. Allocate fixed manufacturing overhead using a plant-wide overhead allocation rate based on direct-machine hours: Formula for allocating fixed overhead: allocation rate: times: direct machine hours: equals: overhead allocated to individual product Allocation to Basic Purse product line: $4. Crane Fabrication allocates manufacturing overhead to each job using departmental overhead rates. Crane's operations are divided into a metal casting department and a metal finishing department. Estimated overhead costs for the year are 8744. Crane's operations are divided into a metal. If costs from the Janitorial Department are allocated based on square. By reading the following article, you will get a brief, informative overview of all of the different types of overhead cranes. 85. In this paper, we include the crane scheduling problem into. REQUIRED: a) Compute for the pre-determined overhead rate b) Compute for the total overhead applied to the job c) Determine the total cost of the job. Customer service hotline. WF Welding Overhead Cranes Rebrands, Custom Steel Inc Specialize in Overhead Cranes and, The company has also expanded its operations in the Edmonton areaAnswer is complete but not entirely correct. Crane Fabrication allocates manufacturing overhead to each job using departmental overhead rates. It's extremely simplified his operation. The following information was estimated at the beginning of the year: $300,000 of Estimated Manufacturing Overhead 10,000 Estimated Machine Hours 20,000 Estimated Direct Labor Hours During the year, it took 2,000 machine hours and 6,000 direct labor hours to. exist7. ) The company allocated manufacturing overhead of $127,400 using a. Build and Quote; Chain Hoist Cranes; Remote Operating Station for Overhead Cranes; Rope Hoist Cranes. Workstation Cranes. 00|… Crane Fabrication allocates manufacturing overhead to each job using departmental overhead rates. The company's operations are divided into a casting department and a finishing department. Ross Corporation produces a single product. … A: Compute the total cost of Job A216: Concept explainers Cast Iron Fabrication allocates manufacturing overhead to each job using departmental overhead rates. Crane's operations are divided into a metal casting department and a metal finishing department. 86 B) $12. Ryan's operations are divided into a metal casting department and a metal finishing department. Cast Iron Fabrication allocates manufacturing overhead to each job using departmental overhead rates. Overcosted by $1,200 hour $20/inspection. Capco Crane | Overhead Crane Fabrication Contractor. Indirect labor $1. WagesExpert-verified. Expert-verified. The job cost sheet shows the following information: Mixing Department Paving Department Direct material $45,200 $6,800 Direct labor cost $2,500 $8,100 Direct labor hours 48 680 Machine hours 580 88 Compute the overhead applied to Job #220 for each department and in total. The casting department uses a departmental overhead rate of $58 per machine hour, while the finishing department uses a departmental overhead rate of $29. One 5 Ton overhead Gantry Crane; Two 30 Ton overhead Gantry Cranes; Steam Generator for vapour cure inside main shop. 000. 30 D) $13. Ryan Fabrication allocates manufacturing overhead to each job using departmental overhead rates. The Milling Department logs 1,800 machine hours and Cutting Department shows 3,000 machine hours for the period. 40 The direct materials cost, direct labor cost, and. Ryan Fabrication allocates manufacturing overhead to each job using departmental overhead rates. The casting department uses a departmental overhead rate of $51 per machine hour, while the finishing department uses a. What was the total cost of Job A216 if Crane Fabrication used the departmental overhead rates to allocate manufacturing overhead? 0 thoughts on “Crane Fabrication allocates manufacturing overhead to. Because manufacturing overhead is applied at a rate of $30 per direct labor hour, $180 (= $30 × 6 hours) in overhead is applied to job 50. Crane's operations are divided into a metal casting department and a metal finishing department. $300 B. For example, if your company has $80,000 in monthly manufacturing overhead and $500,000 in monthly sales, the overhead percentage would be about 16%. 00 Variable manufacturing cost per unit (a) $ 11. 58. The casting department uses a departmental overhead rate of $54 per machine hour, while the finishing department uses a. Crane Fabrication allocates manufacturing overhead to each job using departmental overhead rates. Crane si operatiant are divided isto a metal canting department and a metal finishing departmen. Tower estimates it will incur $200,000 of total overhead costs and use. 00 Number of units produced (d). Compute the company’s predetermined overhead rate for the year. Ryan fabrication allocated manufacturing overhead to each job using departmental overhead rates. AP's simple costing system allocates manufacturing overhead to its three customers based on machine-hours and prices its contracts based on full costs. 000 Direct Labor Hours 2000 DLH Finishing. 00 per direct labor-hour and $20. The casting department uses a departmental overhead rate of $51 per machine hour, while the finishing department uses a departmental overhead rate of. Crane's operations are divided into a metal casting department and a metal finishing department. Question: Wildhorse Company allocates overhead at the rate of $4 per direct labor hour. Cross Roads Manufacturing currently uses a traditional costing system. The Assembly Department uses a departmental overhead rate of. The predetermined overhead rate is $7. Crane Fabrication allocates manufacturing overhead to each job using departmental overhead rates. Data for the two products for the upcoming year follow Mercon. To calculate labor efficiency variant, formulas standard ours. We know the Steel Making Process, We will work with you to lift heavy and dangerous items throughout your operation. Crane si operatiant are divided isto a metal canting department and a metal finishing departmen. $271,672. $366. VIDEO ANSWER: I want to say hello to everyone. Overhead TotalDirectLabor Hours DLH per Product A B Painting Dept. The casting department uses a departmental overhead rate of $57 per machine hour, while the finishing department uses a. b. The companys operations are divided into a casting department and a finishing departmene The casting department uses a departmental overhead rate of $6 per machine hour, while the finishing department uses a departmertal ovechead rate of $26. Crano's operations are divided into a metal casting department and a metal finishing department. ) 1. … A: Compute the total cost of Job A216: Q: he following is taken from Clausen Company’s internal records of its factory with two operating…Traditional allocation involves the allocation of factory overhead to products based on the volume of production resources consumed, such as the amount of direct labor hours consumed, direct labor cost, or machine hours used. Assume that Pell: • allocates manufacturing overhead based on machine hours • estimated 9,000 machine hours and $88,000 of manufacturing overhead costs actually used 13,000 machine hours and incurred the. The current system at ACE allocates manufacturing overhead to products based on direct labor costs. The bags come in three sizes: Large, Medium, and Small. Crane's operations are divided into a metal casting department and a metal finishing department. The amount of manufacturing overhead allocated for the year based on machine hours would have been. Crane's operations are divided into a metal casting department and a metal finishing department. The casting department uses a departmental overhead rate of $52 per machine hour,. What is the total. The most common type of overhead crane used in manufacturing environments is the overhead bridge crane (see Figure 1). It also offers plasma and waterjet cutting services. Crane's operations are divided into a metal casting department and a metal finishing department. The casting department uses a departmental overhead rate of $56 per machine hour, while the finishing department uses a. ) Read the requirements - X Data Table T Х Requirements Budget Actual Direct labor hours. Rocky Tailoring has three departments: design, machine sewing, and beading. 000. Crane's operations are divided into a metal casting department and a metal finishing department. The company's conventional cost system allocates manufacturing overhead to pro;. $2,823 Direct Materials $1,600. The casting department uses a departmental overhead rate of $52 per machine hour, while the finishing department uses a departmental. $300 B. Direct material Direct labor Manufacturing overhead @ $52 per machine hour Cost if purchased from an outside supplier Annual demand (units) Blender 25 19 52. Hartley Uniforms produces uniforms. The journal entry to reflect this is as follows: Recording the application of overhead costs to a job is further illustrated in the T-accounts that follow. The casting department uses a departmental overhead rate of $50 per machine hour, while the finishing department uses a departmental overhead. is a manufacturing company that specializes in material handling equipment such as overhead hoists, conveyors, dock levelers, boards, overhead hoists, structural framing, and shelving. Search for: Home. 2016-7-29 · Uses and Benefits of Overhead Cranes. Hore Sloan Company produces uniforms. Requirement 1 Estimated yearly overhead costs / Estimated yearly machine hours = Predetermined overhead rate 204,000 / 6,800 = $30 per machine hour Working for Estimated Overheads:. 5 10 520 220 Human Resources shows a budget of $21,000 and accounting, $98,000, for the coming year. Dakota provides the following information: Budgeted 2017 Actual 2017 Direct Materials Costs $2,250,000 $2,150,000 Direct Labor Costs $1,700,000 $1,650,000 Manufacturing OH $3,060,000 $3,217,500 Compute the actual and budgeted overhead rates for 2017. Crane's operations are divided into a metal casting department and a metal tinishing department. Ryan's operations are divided into a metal casting department and a metal finishing department. $25 × 5 direct hrs = $125 Total $675 33) Crane Fabrication allocates manufacturing overhead to each job using departmental overhead rates. Aid Equipment Co. The calculation of the manufacturing overhead is sho. To record the total manufacturing overhead allocated to. The casting department uses a departmental overhead rate of $51 per machine hour, while the finishing department uses a departmental overhead rate of. $37. Crane's operations are divided into a metal casting department and a metal finishing department. Crane Fabrication allocates manufacturing overhead to each job using departmental overhead rates. The company's operations are divided into a casting department and a finishing department. O A. The casting department uses a departmental overhead rate of $51 per machine hour, while the finishing department uses a departmental overhead rate of. 00 per direct labor-hour,. Estimated manufacturing overhead cost $235,300 Actual manufacturing overhead cost $244,800 Estimated machine hours 20,000 Actual machine hours 22,700 The estimates were made as of the beginning of the year, while the actual results were for the entire year. Direct materials are defined as: Traceable matter that is converted by a manufacturer into products. Toole Corporation uses a job order costing system and allocates manufacturing overhead at a rate of $45 per machine hour. 46/machine hour B. Crane's operations are divided into a metal casting. The casting department uses a departmental overhead rate of $52 per machine hour, while the. Company leadership recently learned that its costing system may be too simple for its operations, and that job costs may be fairly inaccurate. Direct materials are added at the beginning of the process. Roadster Company (RC) designs and produces automotive parts. As we all know, in the manufacturing plant the crane scheduling is one part of the production scheduling. Crane’s operations are divided into a metal casting department and a metal finishing department. Compute the total cost of Job A45. 4-Ryan Fabrication allocates manufacturing overhead to each job using departmental overhead rates. 4) Lakeside Company estimated manufacturing overhead costs for 2014 at $378,000, based on 180,000 estimated direct labor hours. EXAMPLE: A contractor has a machine overhead pool that is responsible for managing the employees that work on the company’s 100 fabrication machines and for maintaining the operations of those machines. . For the month of July, the company incurred $118000 of raw material costs, of which $89000 were direct materials, and $29000 were indirect materials. -Variable cost per machine-hour = $779,950 ÷ 9,500 machine-hours.