Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Outdoor Industries manufactures custom-designed playground equipment for schools and city parks. Outdoor expected to incur $627,000 of manufacturing overhead cost, 41,800 of direct labor hours,

image text in transcribed

Outdoor Industries manufactures custom-designed playground equipment for schools and city parks. Outdoor expected to incur $627,000 of manufacturing overhead cost, 41,800 of direct labor hours, and $1,588,400 of direct labor cost during the year (the cost of direct labor is $38 per hour). The company allocates manufacturing overhead on the basis of direct labor hours. During January, Outdoor completed Job 302. The job used 155 direct labor hours and required $14,500 of direct materials. The City of Westlake has contracted to purchase the playground equipment at a price of 26% over manufacturing cost. Read the requirements Requirement 1. Calculate the manufacturing cost of Job 302 First identify the formula, then calculate the predetermined overhead rate Estimated yearly overhead costs Estimated yearly direct labor hoursPredetermined overhead rate 627,000 41,800 15 per hour Calculate the manufacturing cost of Job 302. Direct materials Direct labor Manufacturing overhead 14,500 5,890 2,325 22,715 Total job cost Requirement 2. How much will the City of Westlake pay for this playground equipment? (Round your answers to the nearest whole number.) Total price to charge Choose from any list or enter any number in the input fields and then click Check

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

Cloud Computing Data Auditing Algorithm

Authors: Manjur Kolhar, Abdalla Alameen, Bhawna Dhupia, Sadia Rubab, Mujthaba Gulam

1st Edition

1946983144, 978-1946983145

More Books

Students also viewed these Accounting questions

Question

Choosing Your Topic Researching the Topic

Answered: 1 week ago

Question

The Power of Public Speaking Clarifying the

Answered: 1 week ago