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Foster Enterprises makes custom-order draperies. In late 2013, when managers prepared the budget for 2014, they estimated that manufacturing overhead would total $100,170. Because the
Foster Enterprises makes custom-order draperies. In late 2013, when managers prepared the budget for 2014, they estimated that manufacturing overhead would total $100,170. Because the production process is labor intensive, overhead is allocated to jobs based on direct labor hours. Managers expected total direct labor hours to amount to 477,000 hours. During March and April of 2014, employees worked on only three jobs. Relevant information for each job follows: Monthly Data Recorded Job 76 Job 77 Job 78 March Direct materials cost $13.156 Direct labor cost $36.193 Direct labor hours 3,786 April Direct materials cost $0 $10,893 $6,369 Direct labor cost $9,898 $23,119 $2,904 Direct labor hours 1,120 2,590 342 Job 76 was started in March, finished in April, and delivered to the customer in the same month. Job 77 was started in April, finished in April, and delivered to the customer in May. Job 78 was started in April and finished in May. Your answer is correct. What predetermined overhead rate will the company use for all jobs worked on during 2014? (Round Overhead rate to 2 decimal places, e.g. 15.25.) Overhead rate $ .21 /DLH e Textbook and Media Assistance Used Attempts: 1 of 3 used (b) Compute the cost of each job (don't forget to allocate overhead). (Round overhead applied and final answers to the nearest whole dollar, e.g. 5,275.) Job 76 Job 77 Job 78 Total costs $ $ $
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