Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Characteristics of Production Process, Cost Measurement Vince Melders, of EcoScape Company, designs and installs custom lawn and garden irrigation systems for homes and businesses throughout

Characteristics of Production Process, Cost Measurement

Vince Melders, of EcoScape Company, designs and installs custom lawn and garden irrigation systems for homes and businesses throughout the state. Each job is different, requiring different materials and labor for installing the systems. EcoScape estimated the following for the year:

Number of direct labor hours6,580Direct labor cost$72,380Overhead cost$54,614

During the year, the following actual amounts were experienced:

Number of direct labor hours6,015Direct labor incurred$72,180Overhead incurred$54,592.14

Required:

1.Should EcoScape use process costing or job-order costing?

Job-order costing

2.If EcoScape uses a normal costing system and overhead is applied on the basis of direct labor hours,

What is the overhead rate? Round your answer to the nearest cent.

$per direct labor hour

What is the average actual wage rate?

$per direct labor hour

What is the cost of an installation that takes $3,640 of direct materials and 20 direct labor hours?

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

Step: 3

blur-text-image

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

Managerial Accounting

Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer

13th Edition

978-0073379616, 73379611, 978-0697789938

More Books

Students also viewed these Accounting questions