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Leisure Industries manufactures custom-designed playground equipment for schools and oity parks. Leisure expected to incur $627,000 of manufacturing overhead cost, 41,800 of direct labor hours,
Leisure Industries manufactures custom-designed playground equipment for schools and oity parks. Leisure expected to incur $627,000 of manufacturing overhead cost, 41,800 of direct labor hours, and $1,421,200 of direct labor cost during the year (the cost of direct labor is $34 per hour). The company allocates manufacturing overhead on the basis of direct labor hours. During November, Leisure completed Job 305. The job used 175 direct labor hours and required $13,300 of direct materials. The City of Southtown has contracted to purchase the playground equipment at a price of 22 % 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 1. Calculate the manufacturing cost of Job 305 2 How much will the City of Southtown pay for this playground equipment
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