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Nelson Corporation manufactures custom cabinets for kitchens. It uses an actual costing system with two direct-cost categoriesdirect materials and direct manufacturing laborand one indirect-cost pool,
Nelson Corporation manufactures custom cabinets for kitchens. It uses an actual costing system with two direct-cost categoriesdirect materials and direct manufacturing laborand one indirect-cost pool, manufacturing overhead costs. It provides the following information for 2020. (Click the icon to view the information for 2020.) Read the requirement. Begin by calculating the actual manufacturing overhead rate. (Assume the cost allocation base is direct labor hours.) Actual manufacturing . overhead rate . Now calculate the cost of the 32 Pioneer Drive job using actual costing. Job Costs 32 Pioneer Drive Job Data table $ 1,080,000 Total costs Budgeted manufacturing overhead costs Budgeted direct manufacturing labor-hours Actual manufacturing overhead costs Actual direct manufacturing labor-hours 30,000 hours 1,026,000 $ 27,000 hours Print Done
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