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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
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
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