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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

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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 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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