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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
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
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