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1. Should EcoScape use process costing or job-order costing? 2. If EcoScape uses a normal costing system and overhead is applied on the basis of

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  1. 1. Should EcoScape use process costing or job-order costing?

    2. If EcoScape uses a normal costing system and overhead is applied on the basis of direct labor hours,

    What is the overhead rate? Round your answer to the nearest cent.

    What is the average actual wage rate?

    What is the cost of an installation that takes $3,500 of direct materials and 20 direct labor hours?

Characteristics of Production Process, Cost Measurement Vince Melders, of EcoScape Company, designs and installs custom lawn and garden irrigation systems for homes and businesses throughout the state. Each job is different, requiring different materials and labor for installing the systems. EcoScape estimated the following for the year: Number of direct labor hours 6,720 Direct labor cost $67,200 Overhead cost $50,400 During the year, the following actual amounts were experienced: Number of direct labor hours 6,045 Direct labor incurred $66,495 Overhead incurred $50,500 Required

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