Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Everlast Manufacturing Company uses a predetermined manufacturing overhead rate based on a percentage of direct labor cost. At the beginning of 2020, they estimated total

Everlast Manufacturing Company uses a predetermined manufacturing overhead rate based on a percentage of direct labor cost. At the beginning of 2020, they estimated total manufacturing overhead costs at $1,203,750, and they estimated total direct labor costs at $1,500,000. The administration and selling overheads are to be absorbed in each job cost at 33% of prime cost. Distribution cost should be added to each job according to quotes from outside carriage companies. The company wishes to quote for Job # B4000. Data for the job are as follows: Direct materials cost $159,500 Direct labour cost $240,000 Direct labour hours 400 hours Special Design Cost $12,850 Distribution quote from haulage company $17,900 a) Compute Everlast Manufacturing Company predetermined manufacturing overhead rate for 2020. b) Determine how much manufacturing overhead was allocated to Job #B4000? c) Calculate the total cost & quotation price of Job #B4000, given that a margin of 20% is applied. d) Given that Job #4000 consisted of 250 units, determine the production cost per unit?

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

Global Accounting And Control A Managerial Emphasis

Authors: Sidney J. Gray, Stephen B. Salter, Lee H. Radebaugh

1st Edition

0471128082, 978-0471128083

More Books

Students also viewed these Accounting questions

Question

find all matrices A (a) A = 13 (b) A + A = 213

Answered: 1 week ago