Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed

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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Practice Of Modern Internal Auditing

Authors: Lawrence B Sawyer

2nd Edition

0894130927, 978-0894130922

More Books

Students also viewed these Accounting questions

Question

Explain how a cable modem works.

Answered: 1 week ago