Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

OPEN CAMPUS Discussion Question Epsilon Manufacturing Company uses a predetermined manufacturing overhead rate based on a percentage of direct labor cost. At the beginning of

image text in transcribed

OPEN CAMPUS Discussion Question Epsilon Manufacturing Company uses a predetermined manufacturing overhead rate based on a percentage of direct labor cost. At the beginning of 2018, they estimated total manufacturing overhead costs at $1,015,000, and they estimated total direct labor costs at $1,400,000. The administration and selling overheads are to be absorbed in each job cost at 15% of production cost. Distribution cost should be added to each job according to quotes from outside carriage companies. The company wishes to quote for job # W 500. Data for the job are as follows: Direct materials cost Direct labour cost Direct labour hours Special Design Cost Distribution quote from haulage company Units of product produced $169,450 $230,000 400 hours $12.300 $17.930 250 crates a) Compute Epsilon Manufacturing Company predetermined manufacturing overhead rate for 2018 b) How much manufacturing overhead was allocated to Job #W500? c) Calculate the total cost & quotation price of Job #W500, given that a margin of 25% is applied d) How much was the production cost per unit (as per cute) of linished product? 73 PM 10/27/2020

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

Contemporary Auditing

Authors: Michael C. Knapp

11th edition

1305970810, 9781337514811, 1337514810, 978-1305970816

More Books

Students also viewed these Accounting questions

Question

What value in Exercise 26 corresponds to the 40th percentile?

Answered: 1 week ago

Question

How do they adapt when those messages are challenged?

Answered: 1 week ago

Question

=+ How can they be incorporated into social media content?

Answered: 1 week ago