Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Leisure Industries manufactures custom-designed playground equipment schools and city parks. Leisure expected to incur $627,000 of manufacturing overhead cost 41.800 of direct labor hours and

image text in transcribed

Leisure Industries manufactures custom-designed playground equipment schools and city parks. Leisure expected to incur $627,000 of manufacturing overhead cost 41.800 of direct labor hours and 51,003,200 of direct labor cost during the year (the cost of direct labor is $24 per hour). The company allocates manufacturing overtiead on the basis of direct labor hours. During March, Leisure completed Job 302. The job used 165 direct labor hours and required $12,700 of direct materials. The City of Adams has contracted to purchase the playground equipment at a price of 22% over manufacturing cost. Read the recurements Requirement 1. Calculate the manufacturing cost of Job 302 First identify the formula, then calculate the predetermined overhead rate. Estimated yearly direct labor costs y - Predetermined overhead rate per hour Requirements 1. Calculate the manufacturing cost of Job 302. 2. How much will the City of Adams 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 to Expert-Tailored 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

More Books

Students also viewed these Accounting questions