Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Cat Company uses a job order cost system and applies manufacturing overhead costs to jobs using a predetermined overhead rate based on direct labour-hours.
Cat Company uses a job order cost system and applies manufacturing overhead costs to jobs using a predetermined overhead rate based on direct labour-hours. The following data were extracted from the company's accounting records for Year 10: Manufacturing overhead costs Estimated $50,000 Actual $54,000 20,000 hours 24,000 hours Direct labour hours Job #500 was completed during the year and the following costs had been incurred on that job: Direct materials: Direct labour $4,000 $1.500 (at $5.00 per direct labour hour) Required: 1. What is the predetermined overhead rate for Cat Company? 2. How much overhead would be applied to Job#500? 3. Suppose Job #500 contained 100 units. What would be the total cost for job #500?
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