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= Homework: Cha... Question 5, E3-26A (simil... Part 4 of 9 HW Score: 86.15%, 8.62 of 10 points Points: 0.62 of 2 Save Rosa Recycling
= Homework: Cha... Question 5, E3-26A (simil... Part 4 of 9 HW Score: 86.15%, 8.62 of 10 points Points: 0.62 of 2 Save Rosa Recycling recycles newsprint, cardboard, and so forth, into recycled packaging materials. For the coming year, Rosa estimates total manufacturing overhead to be $369,260. The company's managers are not sure if direct labor hours (estimated to be 9,980) or machine hours (estimated to be 18,463 hours) is the best allocation base to use for allocating manufacturing overhead. Rosa bids for jobs using a 31% markup over total manufacturing cost. After the new fiscal year began, Lundy Paper Supply asked Rosa Recycling to bid for a job that will take 1,975 machine hours and 1,550 direct labor hours to produce. The direct labor cost for this job will be $14 per hour, and the direct materials will total $25,900. Read the requirements. TIISI LAIVUILE uie pleuelen Teu uverneau Tale vaseu VII UNELL AVUI TIDUI S. Iuency me lului anu lien Lumpule ule Tate. + Estimated yearly direct labor hours Predetermined overhead rate Estimated yearly overhead costs 369,260 9,980 37 per hour Next we will calculate the total job cost. Job Sheet Direct labor $ 21,700 Direct materials 25,900 Manufacturing overhead 57,350 $ 104,950 Total job cost Compute the bid price if Rosa decided to use direct labor hours as the manufacturing overhead allocation base for the year. (Round all amounts to the nearest whole dollar.) Manufacturing overhead Markup for profit Bid price 75128.5 + +
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