Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Metal Fab is a business that specialises in making metal fabrications for their customers. Each fabrication is different, so Metal Fab uses a job costing

Metal Fab is a business that specialises in making metal fabrications for their customers. Each fabrication is different, so Metal Fab uses a job costing system. Metal Fab uses a predetermined overhead recovery rate to apply overheads (indirect costs) to jobs. Metal Fab uses direct labour hours as the overhead cost driver. The following annual figures are budgeted for Metal Fab: Overheads (indirect costs) $84000 $112500 Direct labour hours 6000 Direct labour costs A customer asks Metal Fab to quote a job for them (to fabricate sheet metal to their specifications). Metal Fab estimates the following for the quote: Direct materials used to manufacture the sheet metal $2000 Direct labour hours used to manufacture the sheet metal 16 The overhead recovery rate for Metal Fab is $ (enter your answer as a whole number with no decimal points, commas or symbols) The full cost of the job being quoted is $ (enter your answer as a whole number with no decimal points, commas or symbols)

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

Managerial Accounting Strayer University

Authors: Strayer University

3rd Custom Edition

0077234804, 978-0077234805

More Books

Students also viewed these Accounting questions

Question

2. How much time should be allocated to the focus group?

Answered: 1 week ago