Question
All Wood Industries manufactures custom-designed playground equipment for schools and city parks. All Wood expected to incur $637,500 of manufacturing overhead cost, 42,500 of direct
All Wood Industries manufactures custom-designed playground equipment for schools and city parks. All Wood expected to incur $637,500 of manufacturing overhead cost, 42,500 of direct labor hours, and $860,000 of direct labor cost during the year (the cost of direct labor is $38 per hour). The company allocates manufacturing overhead on the basis of direct labor hours. All Wood completed Job 305. The job used 180 direct labor hours and required $13,000 of direct materials. The City of Ogdenville has contracted to purchase the equipment at a price of 23% over manufacturing cost. What is the price All Wood will charge to the City of Ogdenville for the equipment?
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