Answered step by step
Verified Expert Solution
Link Copied!

Question

...
1 Approved Answer

Leisure Industries manufactures custom-designed playground equipment for schools and city parks. Leisure expected to incur $627,000 of manufacturing overhead cost, 41,800 of direct labor hours,

image text in transcribedimage text in transcribed

Leisure Industries manufactures custom-designed playground equipment for schools and city parks. Leisure expected to incur $627,000 of manufacturing overhead cost, 41,800 of direct labor hours, and $836,000 of direct labor cost during the year (the cost of direct labor is $20 per hour). The company allocates manufacturing overhead on the basis of direct labor hours. During June, Leisure completed Job 305. The job used 190 direct labor hours and required $14,800 of direct materials. The City of Ogdenville has contracted to purchase the playground equipment at a price of 21% over manufacturing cost. Read the requirements. Requirement 1. Calculate the manufacturing cost of Job 305. First identify the formula, then calculate the predetermined overhead rate. Predetermined overhead rate - = per hour Calculate the manufacturing cost of Job 305. Total job cost Requirement 2. How much will the City of Ogdenville pay for this playground equipment? (Round your answers to the nearest whole number.) + = Total price to charge + 1 Requirements 1. Calculate the manufacturing cost of Job 305. 2. How much will the City of Ogdenville pay for this playground equipment? Print Done

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Personal Financial Planning

Authors: Randy Billingsley, Lawrence J. Gitman, Michael D. Joehnk

15th Edition

9780357438480

Students also viewed these Accounting questions