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Leisure Industries manufactures custom-designed playground equipment for schools and city parks. Leisure expected to incur $533,000 of manufacturing overhead cost, 41,000 of direct labour hours,
Leisure Industries manufactures custom-designed playground equipment for schools and city parks. Leisure expected to incur $533,000 of manufacturing overhead cost, 41,000 of direct labour hours, and $1,476,000 of direct labour cost during the year the cost of direct labour is $36 per hour). The company allocates manufacturing overhead on the basis of direct labour hours. During January, Leisure completed Job 309. The job used 190 direct labour hours and required $14,800 of direct materials. The City of Adams has contracted to purchase the playground equipment at a price of 21% over manufacturing cost. 1. Calculate the manufacturing cost of Job 309. 2. How much will the City of Adams pay for this playground equipment? Requirement 1. Calculate the manufacturing cost of Job 309. First identify the formula, then calculate the predetermined overhead rate. / Predetermined overhead rate per hour Calculate the manufacturing cost of Job 309. Total job cost Requirement 2. How much will the City of Adams pay for this playground equipment? (Round both interim and final answers to the nearest whole dollar.) Total price to charge
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