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

image text in transcribed

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) $70000 Direct labour costs $120000 Direct labour hours 5000 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 $2400 Direct labour hours used to manufacture the sheet metal 15 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_2

Step: 3

blur-text-image_3

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

The Future Of Financea The LSE Report

Authors: Chairman Adair Turner, Paul Woolley, Andrew Dr Haldane, Richard Layard, Andrew G. Haldane, Paul Wooley

1st Edition

085328458X, 978-0853284581

More Books

Students also viewed these Finance questions

Question

Build and present competent introductions and conclusions.

Answered: 1 week ago