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bica Manufacturing Company uses a predetermined manufacturing overhead rate based on a percentage of direct labor cost. At the beginning of 2016, they estimated total
bica Manufacturing Company uses a predetermined manufacturing overhead rate based on a percentage of direct labor cost. At the beginning of 2016, they estimated total manufacturing overhead costs at sL.o15,00o, and they estimated total direct labor costs at $1.400,0oo. Ara The administration and selling overheads are to be absorbed in each job cost at 20% of prime cost. istribution cost should be added to each job according to quotes from outside carriage companies The company wishes to quote for job # 511, Job stats are as follows: Direct materials cost Direct labour cost Direct labour hours Special Design Cost Distribution quote from halage company Units of product produced $185,500 $220,0oo 400 hours $13,500 S10,700 200 crates a) Compute Arabic Manufacturing Company predetermined manufacturing overhead rate for 2016. b) How much manufacturing overhead was allocated to Job #511? Calculate the total cost & quotation price of ob #511, given that a margin of 25% is applied. d) How much was the production cost per unit (cost per crate) of finished product
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