Question
1 At speedco, direct labor is charged at $25 per direct labor hour and overhead is applied at a rate of $20 per machine hour.
1 At speedco, direct labor is charged at $25 per direct labor hour and overhead is applied at a rate of $20 per machine hour. Job XYZ required $250 of materials, 3 hour of direct labour and 2 hour of machine time. How much overhead is applied to job XYZ?
2) At SlowCo, overhead is charged based on direct labor hour. They use a predetermined overhead rate on their original budget for the year. The total overhead is the original budget is $1,500,00. The original budget for direct labor is 100,000 hour at $10 per hour, or $1000,00. Job ABC required $300 of materials, 4 hour of direct labor, and 3 hour of machine time. How much overhead is applied to job ABC?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started