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In December 2016, Pavelka Company's manager estimated next year's total direct labor cost assuming 50 persons working an average of 2,000 hours each at an
In December 2016, Pavelka Company's manager estimated next year's total direct labor cost assuming 50 persons working an average of 2,000 hours each at an average wage rate of $15 per hour. The manager also estimated the following manufacturing overhead costs for 2017. Factory utilities Factory insurance expired 44,000 4,000 Repairs expense-Factory equipment Factory supplies used ....30,000 34,400 18,000 At the end of 2017, records show the company incurred $725,000 of actual overhead costs. It completed and sold five jobs with the following direct labor costs: Job 625, $354,000; Job 626, $330,000: Job 627 $175,000; Job 628, $420,000; and Job 629, $184,000. In addition, Job 630 is in process at the end of 2017 and had been charged $10,000 for direct labor. No jobs were in process at the end of 2016. The com predetermined overhead rate is based on direct labor cost. pany's
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