Wheeler's Bike Company manufactures custom racing bicycles. The company uses a job order cost system to...
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Wheeler's Bike Company manufactures custom racing bicycles. The company uses a job order cost system to determine the cost of each bike. Estimated costs and expenses for the coming year follow: Bike parts Factory machinery depreciation Factory supervisor salaries Factory direct labor Factory supplies Factory property tax Advertising cost Administrative salaries Administrative-related depreciation Total expected costs $348,800 59,500 138,500 211,090 37,400 26,250 20,000 46,000 22,700 $910, 240 Required: 1. Calculate the predetermined overhead rate per direct labor hour if the average direct labor rate is $11.11 per hour. 2. Determine the amount of applied overhead if 19,300 actual hours are worked in the upcoming year. Wheeler's Bike Company manufactures custom racing bicycles. The company uses a job order cost system to determine the cost of each bike. Estimated costs and expenses for the coming year follow: Bike parts Factory machinery depreciation Factory supervisor salaries Factory direct labor Factory supplies Factory property tax Advertising cost Administrative salaries Administrative-related depreciation Total expected costs $348,800 59,500 138,500 211,090 37,400 26,250 20,000 46,000 22,700 $910, 240 Required: 1. Calculate the predetermined overhead rate per direct labor hour if the average direct labor rate is $11.11 per hour. 2. Determine the amount of applied overhead if 19,300 actual hours are worked in the upcoming year.
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Related Book For
Managerial Accounting
ISBN: 978-0078025518
2nd edition
Authors: Stacey Whitecotton, Robert Libby, Fred Phillips
Posted Date:
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