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Leisure manufactures custom-designed playground equipment for schools and city parks. Leisure expected to incur $906,400 of manufacturing overhead cost, 41,200 of direct labour hours, and
Leisure manufactures custom-designed playground equipment for schools and city parks. Leisure expected to incur $906,400 of manufacturing overhead cost, 41,200 of direct labour hours, and $1,153,600 of direct labour cost during the year (the cost of direct labour is $28 per hour). The company allocates manufacturing overhead on the basis of direct labour hours. During February, Leisure completed Job 301. The job used 175 direct labour hours and required $14,800 of direct materials. The City of Hamptonville has contracted to purchase the playground equipment completed in job 301 at a price of 28% over manufacturing cost. Requirements 1. Calculate the manufacturing cost of Job 301. 2. How much will the City of Hamptonville pay for this playground equipment? Requirement 1. Calculate the manufacturing cost of Job 301. (Round your answer to the nearest whole number.) First identify the formula, and then calculate the predetermined overhead rate. - Predetermined overhead rate = per hour
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