Question
North company uses a traditional single-rate overhead application process in its factory. Overhead is applied using a predetermined rate based on machine hours. North estimates
North company uses a traditional single-rate overhead application process in its factory. Overhead is applied using a predetermined rate based on machine hours. North estimates that it will use 40,000 machine hours during the coming year and its overhead for the year is estimated at at $200,000.
A job produced for one of North's customers required $2,300 of materials, 120machine hours and 28 labor hours. Workers are paid $15 per hour.
1. Calculate Norths predetermined overhead rate.
2. Calculate the amount of overhead North applied to the customers job.
3. Calculate the total cost of the customers job.
Answer as whole numbers
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