Question
ABC Company uses budgeted overhead rates to apply overhead to individual jobs. It uses a system based on direct labor hours. Last year, the company
ABC Company uses budgeted overhead rates to apply overhead to individual jobs. It uses a system based on direct labor hours. Last year, the company made the following estimates for this year.
Direct labor costs$12,600,000
Factory overhead costs$3,060,000
Direct Labor Hours$600,000
Machine Hours$450,000
(a) What is the budgeted overhead rate for the company? (Show your work)
(b) If Job #34199 had the costs listed below, what would be the total cost of Job #34199? (Show your work)
Material costs were $100,000;
Direct labor costs were $140,000;
Direct labor hours were 12,000; and
Machine hours were 15,000.
Please show all of your calculations.
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