Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

How do i solve this step by step. If there is a formula used please advise Alvin Kamara runs a mobile pet grooming service. He

How do i solve this step by step. If there is a formula used please advise

Alvin Kamara runs a mobile pet grooming service. He charges $26 direct labor per grooming hour. He applies overhead to jobs on the basis of grooming hours. He predicts 900 grooming hours for the year. Her estimated overhead costs for the year follow.

Van depreciation $8,800 van insurance expense $1,100 Tool depreciation $450

Van maintenance 1,400 indirect materials 700 other overhead 1,050

  1. Compute the predetermined overhead rate using estimated grooming hours
  2. Alvin has been asked to groom 3 large dogs. He expects this job to require a total of 15 direct labor grooming hours. Compute her total cost (direct labor plus applied overhead) for this job.

If Alvin targets a markup of 20% on the total cost for each job, what price should he quote for the job in part 2?

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

Step: 3

blur-text-image

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

Horngrens Financial And Managerial Accounting

Authors: Tracie Miller Nobles, Brenda Mattison, Ella Mae Matsumura

6th Edition

0134486838, 978-0134486833

More Books

Students also viewed these Accounting questions

Question

Explain limitations on confidentiality inherent in group therapy.

Answered: 1 week ago