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hi, could you please help me with this task. Thank you Custom Auto Parts manufactures parts to order for antique cars. Custom Auto Parts makes
hi, could you please help me with this task. Thank you
Custom Auto Parts manufactures parts to order for antique cars. Custom Auto Parts makes everything from fenders to engine blocks. Each customer order is treated as a job. The company currently has two jobs, Job g823 and Job 9824, that are complete, although overhead has not yet been applied. The company wants to know what each job's cost would be under alternative overhead allocation rates based on: (1) direct labor cost, (2) direct labor hours, and (3) machine hours. Estimates for this year are as follows: Direct labor cost Direct labor hours Machine hours Overhead costs $300,000 25,000 8,000 $200,000 Depreciation on machinery accounts for 75 percent of the overhead costs. The job-cost sheets show: 9823Job 9824 Direct material Direct labor cost Direct labor hours Machine hours $1,000 $1,400 150 130 $2,000 $1,400 130 270 Compute the direct labor cost, direct labor hours and machine hours allocation bases and discuss which allocation base appears preferable.
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