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Executive Desk Company has decided to price its desks at 50% above cost. The problem is they are not sure how to assign factory overhead.
Executive Desk Company has decided to price its desks at 50% above cost. The problem is they are not sure how to assign factory overhead. Your manager has asked you to price the following two jobs based on the information provided: Estimated factory overhead for the year: $700,000 Estimated direct labor hours for the year: 225,000 hours Job 1 has incurred $6,000 of direct materials and $3,000 of direct labor, which is consistent with 400 hours of labor Job 2 has incurred $8,000 of direct materials and $5,000 of direct labor, which is consistent with 500 hours of labor
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