E F G H J K L M N 0 3 Prompton Industries uses job costing to calculate the costs of its jobs with direct labor cost as its manufacturing overhead allocation base. 4 P Q 5 The company manufactures a variety of engines for use in farm equipment. At the beginning of the current year, Prompton estimated that its overhead 6 for the coming year would be $300,000. It also anticipated using 25,000 direct labor hours for the year. Prompton pays its employees an average of $20 7 per direct labor hour. Prompton just finished Job 371, which consisted of two engines for a farm equipment manufacturer. The costs and hours for this 8 job consisted of $15,500 in direct materials used and 160 direct labor hours. 9 10 Requirement 1. What is Prompton's predetermined manufacturing overhead rate based on direct labor (DL) cost? 11 12 Determine the formula to calculate Prompton's predetermined overhead rate based on direct labor costs, then calculate the rate. 13 14 = Predetermined overhead rate % of DL cost 15 16 Requirement 2. Calculate the manufacturing overhead to be allocated based on diret labor cost to Job 371. 17 18 Determine the formula to calculate the overhead to be allocated based on direct labor cost to Job 371. then calculate the manufacturing overhead Question 1 Question 2 Exam #2 4 + 134% P 16 Requirement 2. Calculate the manufacturing overhead to be allocated based on diret labor cost to Job 371. 17 18 Determine the formula to calculate the overhead to be allocated based on direct labor cost to Job 371, then calculate the manufacturing overhead 19 allocated. (Round your answer to the nearest whole dollar.) 20 21 X X 22 23 Requirement 3. What is the total cost of Job 371? 24 25 26 67 27 28 22 29 Total job cost 30 Job 371 Manufacturing overhead allocated