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Ch08 Homework - PDR Question 8 of 10 < > Show Attempt History 0.33/1 Current Attempt in Progress Gary was looking back at the
Ch08 Homework - PDR Question 8 of 10 < > Show Attempt History 0.33/1 Current Attempt in Progress Gary was looking back at the profitability of a few jobs from the prior year, wondering if more profit could have been generated. The executive team of this custom manufacturing shop tries to achieve gross margins near 50% for all of its projects. Each completed job that Gary examined was profitable when overhead costs were determined using the company's actual costing system. Still, since he didn't have those total job costs until the end of the year, he wondered if he could have built in a larger gross margin if he had been able to better estimate these total job costs sooner. Here is more detailed information on the three jobs Gary is reviewing Job #45 Job #76 Job #821 Actual DM costs $5,900 $12.300 $16.700 Actual DL costs 4.350 14,500 10,200 Applied MOH costs under actual costing 28,275 94,250 66,300 Total costs 38.525 121.050 93,200 Sales revenue 57,000 200,000 135,000 In this manufacturing company, MOH is applied based on direct labor costs.
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