Kovack Construction estimated its factory overhead for 2021 to be $150,000. It assigns overhead to jobs based on the direct labor cost of a job. The estimated total direct labor cost for 2021 was $93,750.
One of the jobs worked on in January 2021 was for Hillier Chemicals. The Hillier job required $1,900 of
direct materials and incurred $8,300 of direct labor costs.
REQUIRED: (SHOW CALCULATIONS)
a) Calculate the predetermined overhead rate for 2021.
b) Calculate the amount of overhead to assign to the Hillier job.
c) Show a calculation to determine the total cost of the Hillier job.