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1. Compute the total cost for each job using activity-based costing. The cost of direct labor is $28 per hour. 2. Is the job cost
1. Compute the total cost for each job using activity-based costing. The cost of direct labor is $28 per hour. 2. Is the job cost greater or less than that computed under standard costing for each job? Why? 3. If Pritchet Computer Company wants to earn an operating income equal to 40% of the total cost, what sales price should it charge each of these two customers? Standard costing (single plantwide rate): * Direct labor calculated as follows: ** Manufacturing overhead calculated as follows: 1. Compute the total cost for each job using activity-based costing. The cost of direct labor is $28 per hour. 2. Is the job cost greater or less than that computed under standard costing for each job? Why? 3. If Pritchet Computer Company wants to earn an operating income equal to 40% of the total cost, what sales price should it charge each of these two customers? Standard costing (single plantwide rate): * Direct labor calculated as follows: ** Manufacturing overhead calculated as follows
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